Village Farms International, Inc. VFF has completed its previously announced direct offering with institutional investors for the purchase and sale of 18.4 million shares at $1.35 per share, along with the accompanying warrants to purchase up to 18.4 million shares, which have an exercise price of $1.65 per share.
Placement agent fees and other offering expenses payable by Village Farms are some of the money deducted from the sale of the common shares. The warrants will be valid beginning on July 30, 2023 and will expire on July 30, 2028. During this period, the proceeds from the exercise of all warrants would be approximately US $30 million.
The net proceeds from this offering are intended to be used for general working capital purposes.
After closing of the Offering, there were 110,238, 929 issued and outstanding common shares of Village Farms.
A.G. P. Alliance Global Partners and Cantor Fitzgerald Co. acted as co-lead placement agents for the offering.
As a result of the offering, Michael DeGiglio'sDeGiglio's founder, president, chief executive officer and director of Village Farms ownership of Village Farms was diluted below 10% of Village Farms' issued and outstanding common shares. DeGiglio is no longer subject to ongoing early warnings under Canadian securities laws in respect of his ownership of Village Farms because he now owns or exercises control over less than 10% of the issued and outstanding common shares of Village Farms.
Village Farms shares were 6.93% higher at $0.07 per share at the time of writing Tuesday morning.
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