Cannabis and veggie grower Village Farms raising $25 million

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Cannabis and vegetable grower Village Farms International is raising $25 million (33 million Canadian dollars) via a registered direct offering with institutional investors.

In a Thursday news release, Village Farms said it entered into definitive agreements with the unidentified institutional investors for the purchase and sale of 18.35 million common shares along with warrants to purchase another 18.35 million shares.

The shares and warrants will be sold for a combined price of $1.35 per share.

The warrants will have an exercise price of $1.65, the company said, and will be exercisable for five years beginning six months from issuance.

Village Farms said the net proceeds from the offering will be used for general working purposes.

The offering is expected to close around Jan. 30.

Consolidated sales for Village Farms, which grows produce and cannabis, were $71.1 million in the quarter ended Sept. 30, 2022.

As of that date, cash on hand amounted to $18.2 million.

Shares of Village Farms trade as VFF on the Nasdaq exchange.