VANCOUVER, Feb. 13, 2019 /PRNewswire/ - Village Farms
International, Inc. ("Village Farms" or the "Company") (TSX:VFF)
(OTCQX: VFFIF) today announced that its 50%-owned joint venture for
large-scale, low-cost, high-quality cannabis production, Pure
Sunfarms Corp. ("Pure Sunfarms") has entered into a credit
agreement with Bank of Montreal
("BMO"), as agent and lead lender and Farm Credit Canada ("FCC") as
lender (together with BMO, the "Lenders") in respect of a
CAD$20 million secured non-revolving
term loan (the "Credit Facility"). Pure Sunfarms intends to
use the funds available under the Credit Facility to finance the
final costs of converting its 1.1 million square foot greenhouse
for cannabis production, the vast majority of which was completed
in January of this year. The funds available under the Credit
Facility may also be used for general corporate purposes.
"The ability to establish this Credit Facility with Bank of
Montreal, a Canadian Schedule I
bank, and Farm Credit Canada, the country's leading agriculture
lender, is a testament to the strength and potential of Pure
Sunfarms," said Michael DeGiglio,
Chief Executive Officer, Village Farms International.
"Village Farms has long-standing relationships with both BMO and
FCC, each of which, based on our extensive histories, recognizes
and values our three decades of large-scale greenhouse production
experience and deep expertise throughout the supply chain. We
are pleased to now extend these relationships to Pure Sunfarms as
it rapidly approaches full production at one of the single largest
cannabis facilities in the world and begins to generate positive
cash flow from operations as expected in the first quarter of
2019."
"Pure Sunfarms is proud to enter into this Credit Facility with
these two highly respected institutional lenders," said Mandesh
Dosanjh, President and Chief Executive Officer, Pure Sunfarms.
"This is truly an exciting time for our organization and we are
appreciative of the support of each as Pure Sunfarms establishes
itself as a vertically integrated supplier to the Canadian cannabis
market."
The Credit Facility, which matures on February 7, 2022, is secured by Pure Sunfarms'
greenhouse facility, and contains customary financial and
restrictive covenants.
With conversion of all growing areas, totaling more than one
million square feet, of its greenhouse facility completed, Pure
Sunfarms expects to be in production in all quadrants of the
facility in the first quarter of this year and to reach full run
rate annual production of 75,000 kilograms mid-year. The
technologically-advanced Delta 3 greenhouse design is based on
decades of large-scale, low-cost agricultural production experience
and extensive cannabis expertise, resulting in a state-of-the-art
facility with 16 grow rooms optimized for year-round harvesting
(more than 80 harvests annually).
About Village Farms International, Inc.
Village Farms International, Inc. is one of the largest and
longest-operating vertically integrated greenhouse growers in
North America and the only
publicly traded greenhouse produce company in Canada. Village Farms produces and distributes
fresh, premium-quality produce with consistency 365 days a year to
national grocers in the U.S. and Canada from more than nine million square feet
of Controlled Environment Agriculture (CEA) greenhouses in
British Columbia and Texas, as well as from its partner greenhouses
in British Columbia, Ontario and Mexico. The Company is now
leveraging its 30 years of experience as a vertically integrated
grower for the rapidly emerging global cannabis opportunity through
its 50% ownership of British
Columbia-based Pure Sunfarms Corp., one of the single
largest cannabis growing operations in the world. The Company
also intends to pursue opportunities to become a vertically
integrated leader in the U.S. hemp and CBD markets, subject to
compliance with all applicable U.S. federal and state laws.
Cautionary Language
Certain statements contained in this press release constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Forward-looking
statements may relate to the Company's future outlook or financial
position and anticipated events or results and may include
statements regarding the financial position, business strategy,
budgets, litigation, projected production, projected costs, capital
expenditures, financial results, taxes, plans and objectives of or
involving the Company. Particularly, statements regarding future
results, performance, achievements, prospects or opportunities for
the Company, Pure Sunfarms, the greenhouse vegetable industry or
the cannabis and hemp industries are forward-looking statements. In
some cases, forward-looking information can be identified by such
terms as "outlook", "may", "might", "will", "could", "should",
"would", "occur", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "predict", "potential", "continue", "likely",
"schedule", "objectives", or the negative or grammatical variation
thereof or other similar expressions concerning matters that are
not historical facts.
Although the forward-looking statements contained in this press
release are based upon assumptions that management believes are
reasonable based on information currently available to management,
there can be no assurance that actual results will be consistent
with these forward-looking statements. Forward-looking statements
necessarily involve known and unknown risks and uncertainties, many
of which are beyond the Company's control, that may cause the
Company's or the industry's actual results, performance,
achievements, prospects and opportunities in future periods to
differ materially from those expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among other things, the factors contained in the Company's filings
with securities regulators, including as detailed in the Company's
annual information form and management's discussion and analysis
for the year-ended December 31,
2017.
When relying on forward-looking statements to make decisions,
the Company cautions readers not to place undue reliance on these
statements, as forward-looking statements involve significant risks
and uncertainties and should not be read as guarantees of future
results, performance, achievements, prospects and opportunities.
The forward-looking statements made in this press release only
relate to events or information as of the date on which the
statements are made in this press release. Except as required by
law, the Company undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
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SOURCE Village Farms International, Inc.