Village Farms regains Nasdaq compliance with share price

VANCOUVER - Village Farms International, Inc. (NASDAQ: VFF) has announced that it is back in compliance with Nasdaq’s minimum share price requirement. The agricultural company received formal notice that its closing bid price had met the necessary threshold, closing the compliance issue. The stock has shown remarkable momentum, with InvestingPro data revealing a 50% surge over the past six months and current trading at $1.19.

Previously, Village Farms faced the possibility of delisting from Nasdaq for not maintaining the minimum bid price of $1.00 per share, as required by Nasdaq Listing Rule 5550(a)(2). The company’s share price has since recovered, satisfying the rule’s conditions.

Village Farms is known for its expertise in Controlled Environment Agriculture and is a leading supplier of plant-based Consumer Packaged Goods. It has transitioned from supplying fresh produce to focusing on the cannabis market, with significant operations in Canada and an expanding international presence.

Its Canadian subsidiary, Pure Sunfarms, operates one of the world’s largest cannabis production facilities. The company also owns Rose LifeScience in Québec and is expanding its export business of medical cannabis to countries like Germany, the UK, Israel, Australia, and New Zealand.

In Europe, Village Farms’ Leli Holland holds one of the 10 licenses for the Dutch Coffee Shop Experiment to grow and distribute recreational cannabis. In the United States, the company owns Balanced Health Botanicals, a leading brand in the CBD and hemp market, and plans to leverage its Texas-based greenhouse assets to enter the US THC market, subject to regulatory compliance.

Additionally, Village Farms Clean Energy, in partnership with Terreva Renewables, has been converting landfill gas into renewable natural gas, significantly reducing greenhouse gas emissions in Vancouver.

Village Farms also has an equity interest in Vanguard Food LP, which is involved in creating a branded CPG foods company through acquisitions and expansion.

This restoration of compliance comes as a relief to Village Farms, which is actively pursuing growth opportunities in the high-demand cannabis sector. The information regarding the Nasdaq compliance and the company’s operations is based on a press release statement.

In other recent news, Village Farms International, Inc. has completed the sale of the majority of its fresh produce business, marking a strategic shift toward the cannabis industry. This transition leverages its extensive greenhouse facilities and positions the company for growth in the high-demand cannabinoid market. Village Farms has also entered into a Framework Agreement with Vanguard Food LP and other entities, contributing its produce business assets and receiving a $40 million payment along with a 37.9% equity stake in Vanguard. Additionally, the company has refinanced its Canadian Cannabis Term Loans, consolidating them into a single credit facility with a reduced interest rate and extended maturity date, enhancing its financial flexibility.

Moreover, Village Farms has renegotiated its credit agreement with Farm Credit Canada, introducing improved financial covenants to support its strategic goals in the cannabis sector. The company has secured a 180-day extension from Nasdaq to meet the minimum bid price requirement, allowing it time to maintain its listing. These developments reflect Village Farms’ focus on expanding its cannabis operations both domestically and internationally, with plans to enter the U.S. market subject to regulatory compliance. The company’s subsidiary, Pure Sunfarms, remains a significant player in the cannabis industry, recognized as a leading brand in Canada.

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