Village Farms International Inc (NASDAQ:VFF) Generates Revenues Of $52.4 Million In Q1 2021

Village Farms International Inc (NASDAQ:VFF) posted a growth of 63% to $52.4 million in revenues in Q1 2021. It realized revenues of $17.4 million from cannabis. However, it posted a higher chunk of revenues from its produce at $34.9 million. 

Village Farms product adjusted EBITDA declined by 50% on the backdrop of lower pricing of its tomato products. 

The demand for beefsteak and on-the vine tomato varieties are sluggish in the past ten years. 

Raises $135 million

Village Farms raised a capital of $135 million from institutional investors under a direct register offering of 10.887 million common shares, each at $12.40. 

Villages Farms received $17.7 million by issuing additional 3.045 million shares (through exercising warrants). The company previously issued warrants as part of the direct registered offering in September 2020. It has an outstanding warrant balance of 1.652 million as of today. 

Village Farms paid back CAD 19.9 million promissory notes and accrued interest of CAD 621,534.25. 

Village Farms commenced trading on S&P/TSX Composite Index with effect from March 22, 2021.

Village Farms increased investment in Altum International Pty Ltd to less than 12% from 6% to benefit from overseas opportunities in the Asia-Pacific.

Village Farms extended the maturity date of its credit of CAD 10,000 to May 7, 2024, by amending the operating loan terms. 

Pure Sufarms reports 20% QoQ growth

Village Farms’ CEO, Michael DeGiglio, said Pure Sunfarms, its subsidiary, posted strong growth of 20% QoQ in Q1 2021. The change is impressive despite the restrictions imposed in Canada because of ongoing coronavirus.

The company also improved its performance in Q1 2021 on the backdrop of solid momentum led by the dried flower of Sunfarms. 

The low-cost production, best-in-class operations of Village Farms, and prudent management of SG&A helped Pure Sunfarms to maintain positive EBITDA for the 10th consecutive quarter.

Village Farms Delta 3 facility (1.1 million sq. Ft.) is fully functional. The company expects to expand its manufacturing capacity soon to satisfy the strong demand. 

Village Farms will increase its manufacturing capacity by 50% by the end of this year and double it in H2 2022. 

The successful leadership in Canada improves confidence in the global and US cannabis plans.