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VANCOUVER - Village Farms International, Inc. (NASDAQ: VFF), a vertically integrated agricultural and cannabis company with a market capitalization of $67.4 million, announced today that it has been granted a 180-day extension by Nasdaq to meet the stock market’s minimum bid price requirement. The extension, effective immediately, gives Village Farms until October 13, 2025, to ensure its common share price closes at or above US$1.00 for at least 10 consecutive business days. The stock currently trades at $0.59, having declined 56% over the past year according to InvestingPro data.
The extension follows the lapse of an initial 180-day period granted to the company to comply with Nasdaq’s minimum closing bid price rule. During this new compliance period, Village Farms’ shares will continue to be traded on the Nasdaq Capital Market. The company maintains a healthy liquidity position with a current ratio of 1.86, indicating its ability to meet short-term obligations. If the company fails to meet the requirement by the October deadline, it risks being delisted, although it could request a review by a Nasdaq Hearings Panel.
Village Farms has a diverse portfolio, including large-scale greenhouse operations and a presence in the cannabis and CBD markets in North America and internationally. With annual revenue of $336.18 million and a gross profit margin of 14.1%, its subsidiary, Pure Sunfarms, is recognized as one of the world’s largest cannabis operations and a leading brand in Canada. The company is also expanding its international footprint with medical cannabis exports to various countries and strategic investments in recreational cannabis in Europe.
Additionally, Village Farms Clean Energy, in partnership with Terreva Renewables, generates clean energy from landfill gas, contributing to significant greenhouse gas emission reductions in Vancouver.
This news comes amidst a backdrop of challenges and uncertainties in the cannabis industry, including regulatory changes and market competition. Investors and shareholders are advised to monitor Village Farms’ progress toward meeting Nasdaq’s compliance standards within the newly extended timeframe. This announcement is based on a press release statement from Village Farms International, Inc.
In other recent news, Village Farms International reported its fourth-quarter earnings for 2024, showing an 11% increase in revenue year-over-year to $83 million. Despite this growth, the company posted a net loss of $0.08 per share, missing analysts’ expectations of -$0.02. The company continues to focus on product innovation and operational improvements, which have led to positive cash flow for the third consecutive quarter. Village Farms has also successfully renegotiated its credit agreement with Farm Credit Canada, improving financial covenants to support its strategic growth, particularly in the cannabis sector. The company is planning to triple its international medicinal export sales in 2025 and is targeting $2 million in net income from its Clean Energy segment. Analysts from ATB Capital Markets have noted the company’s international expansion efforts, particularly in the Netherlands, where it holds one of the 10 licenses to supply recreational cannabis. Additionally, Village Farms launched a successful vape product, which has ranked #6 nationally. The company is making significant strides in both the cannabis and clean energy sectors, reflecting its ongoing efforts to enhance financial performance and market presence.
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