Mr. Michael DeGiglio of Village reports
VILLAGE FARMS INTERNATIONAL ANNOUNCES EXPANSION OF PURE SUNFARMS' CREDIT FACILITY WITH EXISTING LENDER BY UP TO $59 MILLION
Village Farms International Inc. and Emerald Health Therapeutics Inc.'s joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has expanded its credit facility with its existing lender to $59-million, including accordion provisions of $22.5-million. The expanded credit facility consists of a $7.5-million revolving operating loan and a $10-million term loan, in addition to its existing $19-million term loan. The new term loan is specifically designated for the 1.1-million-square-foot Delta 2 greenhouse while the existing term loan is specifically designated for the 1.1-million-square-foot Delta 3 greenhouse facility.
The $7.5-million revolver and the $10-million new term loan include an accordion provision that allows Pure Sunfarms to request additional lender commitments of up to an additional $7.5-million and $15-million, respectively, subject to an additional lender entering the syndicate on or before May 30, 2020. Each of the components of the credit facility, including the existing term loan, matures on Feb. 7, 2022.
The finalization of the credit facility is subject to Pure Sunfarms satisfying certain preconditions, including an additional capital contribution by Village Farms of $8-million to Pure Sunfarms, which is expected to be completed this week. Upon completion of the additional capital contribution, Village Farms will have further increased its majority ownership of Pure Sunfarms to 58.7 per cent.
"This significantly expanded credit facility provides Pure Sunfarms with financial resources and flexibility as it continues to build on its success to date as a leading Canadian cannabis producer and brand," said Michael DeGiglio, chief executive officer, Village Farms. "This financing is yet another expression of confidence in the strength and potential of the Pure Sunfarms business and we appreciate the continuing support of Pure Sunfarms existing lender."
About Village Farms International Inc.
Village Farms is one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada. Village Farms produces and distributes fresh, premium-quality produce with consistency 365 days a year to national grocers in the United States and Canada from more than nine million square feet of controlled environment agriculture (CEA) greenhouses in British Columbia and Texas, as well as from its partner greenhouses in B.C., Ontario and Mexico.
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