Business
Village Farms International Announces Expansion of Pure Sunfarms' Credit Facility with Existing Lender by up to $59 Million
– Expanded Facility Provides Additional Financial Resources and Flexibility as Pure Sunfarms Continues to Build on its Success to Date as a Leading Canadian
About this update from Village Farms International, Inc.
[{"type":"text","content":"– Expanded Facility Provides Additional Financial Resources and Flexibility as Pure Sunfarms Continues to Build on its Success to Date as a Leading Canadian Cannabis Producer and Brand – \n VANCOUVER, March 31, 2020 /PRNewswire/ - Village Farms International, Inc. (\"Village Farms\" or the \"Company\") (TSX: VFF; NASDAQ: VFF) today announced its majority-owned 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 (the \"Credit Facility\") consists of a $7.5 million revolving operating loan (the \"Revolver\") and a $10 million term loan (the \"New Term Loan\"), in addition to its existing $19 million term loan (the \"Existing 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. (All figures are in Canadian dollars.)\nThe $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, mature on February 7, 2022.\nThe finalization of the Credit Facility is subject to Pure Sunfarms satisfying certain pre-conditions, including an additional capital contribution by Village Farms of $8 million to Pure Sunfarms (the \"Additional Capital Contribution\"), 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%.\n\"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, CEO, 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 exi...