Village Farms CEO secures new contract with pay terms

Village Farms International, Inc. (NASDAQ:VFF), a player in the agricultural crops sector, has announced a new employment agreement with its Chief Executive Officer, Michael A. DeGiglio. The contract, effective as of Thursday, extends to August 15, 2027, with provisions for automatic one-year extensions unless either party opts out within a specified notice period.

The new agreement, disclosed in a Form 8-K filing with the Securities and Exchange Commission, sets DeGiglio's minimum annual base salary at $1,022,880. The contract also allows for potential increases at the company's discretion and ties incentive compensation to the company's annual bonus program. DeGiglio will be eligible for executive perks and benefits equal to those of other officers, and he will have access to company welfare benefit plans.

Additionally, the contract contains standard business protection clauses, including non-compete, confidentiality, and non-disclosure agreements. It also aligns with the company's clawback policy, which can reclaim executive compensation under certain circumstances.

In the event of termination without cause or resignation for good reason, as defined in the agreement, DeGiglio is entitled to a severance payment equal to three times his current annual salary and a prorated bonus for the year of termination.

The full details of the employment agreement are included as an exhibit to the 8-K filing. This executive contract update comes as part of Village Farms' regular corporate governance and is based on a press release statement.

In other recent news, Village Farms International has reported substantial growth in its second quarter, with total net sales increasing by 45% year-over-year to $56 million. This growth was primarily fueled by a strong performance in the Canadian cannabis sector and the fresh produce market. Despite a reported net loss of $23.5 million and negative EBITDA of $3.6 million, the company achieved positive cash flow from operations of CAD7.2 million.

The company's Canadian cannabis sales hit a new quarterly record, with branded retail sales up 35%, and fresh produce sales increased 7% YoY to $47 million. Village Farms also experienced growth in international export sales, particularly from Germany and the UK. However, the company expressed concerns over regulatory issues in the US cannabis market.

Looking ahead, Village Farms is optimistic about its growth potential in the Canadian and EU cannabis markets and is actively seeking to expand its cannabis cultivation capacity in Canada. The company aims to be a top player in each market segment, with a focus on vapes in Canada and a cautious but confident approach to its EU market expansion, particularly in Germany.

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