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VANCOUVER - Village Farms International, Inc. (NASDAQ:VFF), currently trading at $2.64 per share with a market capitalization of $297 million, announced Monday that its Board of Directors has unanimously approved a $10 million share repurchase program for up to 5,687,000 common shares, representing five percent of the company’s outstanding shares.
The cannabis and produce company expects to close the third quarter with approximately $75 million in cash, according to a press release statement. InvestingPro data shows the company maintains a healthy financial position with more cash than debt on its balance sheet and a current ratio of 2.65x, indicating strong liquidity.
"Today’s announcement reflects our Board of Directors’ confidence in the strength of our balance sheet and expected future cash flow generation to create long-term value for shareholders," said Michael A. DeGiglio, Founder, President and Chief Executive Officer.
The timing and amount of shares repurchased will be determined by company management based on market conditions and other factors. Village Farms may enter into an automatic plan to facilitate repurchases in compliance with U.S. Securities Exchange Act regulations and Canadian National Instrument requirements.
The company is not obligated to acquire any specific amount of securities under the program, which may be suspended or discontinued at any time. Share repurchases will be funded from existing cash reserves and future cash generated from operations.
Village Farms operates in multiple segments, including cannabis production through its Canadian subsidiary Pure Sunfarms, which operates 2.2 million square feet of greenhouse production. The company also has international cannabis operations with exports to markets including Germany, the United Kingdom, and Australia, and holds one of ten licenses to grow and distribute recreational cannabis in the Netherlands through its wholly-owned subsidiary Leli Holland. According to InvestingPro analysis, the company shows strong revenue growth with a 42% increase in the last twelve months, though analysts anticipate a sales decline in the current year. Get access to 13 additional ProTips and comprehensive financial analysis with an InvestingPro subscription.
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