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Village Farms International Announces US$135 Million Registered Direct Offering

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Village Farms International, Inc. (“Village Farms” or the “Company“) (NASDAQ: VFF) (TSX: VFF), announced today that it has entered into definitive agreements with certain institutional investors for the purchase and sale of an aggregate of 10,887,097 common shares in a registered direct offering, for expected gross proceeds of approximately US$135 million (approximately CAD$171 million) before placement agent fees and other offering expenses payable by Village Farms. Each share is being sold at a public offering price of US$12.40 (approximately CAD$15.70) per share.

The closing of the offering is subject to customary closing conditions, including applicable stock exchange approvals, and is expected to close on or about January 20, 2021.  The net proceeds from this offering are intended to be used for general working capital purposes.

A.G.P./Alliance Global Partners and Raymond James (USA) Ltd. are acting as co-lead placement agents and Roth Capital Partners is acting as co-placement agent for the offering. Beacon Securities Limited is acting as financial advisor for the offering.

The securities described above are being offered by Village Farms pursuant to a registration statement on Form S-3 (File No. 333-237792) that was declared effective by the Securities and Exchange Commission (“SEC“) on May 6, 2020. A final prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC’s web site at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, by contacting A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022 or via telephone at 212-624-2006 or email: prospectus@allianceg.com, or Raymond James (USA) Ltd.: 5300 – 40 King Street West, Scotia Plaza, P.O. Box 415, Toronto, Ontario, M5H 3Y2, email: ecm-syndication@raymondjames.ca.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Village Farms International, Inc.

Village Farms is one of the largest and longest-operating greenhouse growers in North America, and is leveraging its decades of experience in large-scale, low-cost intensive agriculture and as a vertically integrated produce supplier to pursue high-value, high-growth plant-based Consumer Packaged Goods opportunities in cannabis and CBD in North America and selected markets internationally. In CanadaBritish-Columbia-based Pure Sunfarms is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer, one of the best-selling brands, and has generated profitability for seven consecutive quarters. In the U.S., subject to compliance with all applicable U.S. federal and state laws, Village Farms is pursuing a strategy to become a leading developer and supplier of branded and white-labeled CBD products targeting “big box” and other major retailers and consumer packaged goods companies, and with one the largest greenhouse operations in country, is well positioned for the potential federal legalization of high-THC cannabis. Internationally, Village Farms is strategically targeting selected, nascent, legal cannabis and CBD opportunities with significant long-term potential, with an initial focus on the Asia-Pacific region through its investment in Australia-based Altum International.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is subject to the safe harbor created by those sections. This press release also contains “forward-looking information” within the meaning of applicable Canadian securities law. We refer to such forward-looking statements and forward-looking information collectively as “forward-looking statements”. Forward-looking statements may relate to the Company’s future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, expansion plans, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable industry or the cannabis industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms as “outlook”, “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “try”, “estimate”, “predict”, “potential”, “continue”, “likely”, “schedule”, “objectives”, or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts. The forward-looking statements in this press release are subject to risks that may include, but are not limited to: our limited operating history, including that of Pure Sunfarms and our start-up operations of growing hemp in the United States; the legal status of Pure Sunfarms cannabis business; risks relating to obtaining additional financing, including our dependence upon credit facilities; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp and agricultural businesses; the ability of Pure Sunfarms to cultivate and distribute cannabis in Canada; existing and new governmental regulations, including risks related to regulatory compliance and licenses (e.g., Pure Sunfarms’ ability to obtain licenses for its Delta 2 greenhouse facility as well as additional licenses under the Canadian act respecting cannabis to amend to the Controlled Drugs and Substances Act, the Criminal Code and other Acts, S.C. 2018, c. 16 (Canada) for its Delta 3 greenhouse facility), and changes in our regulatory requirements; risks relating to conversion of our greenhouses to cannabis production for Pure Sunfarms; risks related to rules and regulations at the U.S. federal (Food and Drug Administration and United States Department of Agriculture), state and municipal levels with respect to produce and hemp; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; the ongoing and developing COVID-19 pandemic; and tax risks.

The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Although the forward-looking statements contained in this press release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company’s control, that may cause the Company’s or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company’s filings with securities regulators, including this press release. In particular, we caution you that our forward-looking statements are subject to the ongoing and developing circumstances related to the COVID-19 pandemic, which may have a material adverse effect on our business, operations and future financial results.

When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SOURCE Village Farms International, Inc.

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BenzingaEditorial

This Week’s Stars Are Zoom, Target and Costco

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Zoom Video Communications (NASDAQ: ZM) will open the week on Monday after market close whereas big box retailers highlight the week’s other big releases, led by Target Inc. (NYSE: TGT) on Tuesday and Costco Wholesale Corp. (NYSE: COST) on Thursday.

Zoom Video Communications

According to Financial Times, researchers at Stanford University have confirmed what millions of remote workers already knew, that “Zoom fatigue” causes greater stress than meeting in real life because of the “non-verbal overload” of endless video calls. Not to mention that users are seeing reflections of themselves at a frequency and duration that hasn’t been seen before in the history of media and the history of people. Although some problems could be solved with trivial changes to its user interface, such as automatically hiding the “selfie” window, the bigger problem is On Zoom, behavior ordinarily reserved for close relationships such as faces seen close up has suddenly become the way we interact with casual acquaintances and even strangers. This new way of communication takes a toll on our mind and that could eventually hamper Zoom’s success with the stocking already having lost its luster due to vaccine developments.

Novavax (NASDAQ: NVAX) is preparing to launch its COVID-19 vaccine after 33 years of failed attempts and facing delisting from the Nasdaq as it couldn’t deliver a single approved shot. We will get a new chapter in a fairytale-like story of a little company that was on the verge of potentially closing getting the chance to play with the big boys in the race for the Covid vaccine. As soon as its vaccine gets approved, it is ready to produce 150m doses a month.

Nio (NYSE: NIO) will pop the hood after market close. Earlier it stated that Q4 deliveries were at a record of 17,353 vehicles which is an increase of 111% YoY and over the upward end of its guidance. But, when it comes to EVs, profitability has frequently taken a back seat and despite the encouraging deliveries, the company has been in the red.

Tuesday

Kohl’s (NYSE: KSS) and Target are due to report before market open. Last week, a group of activist investors pressured the department store to address stagnant sales and operating margins so it will be interesting to see how the story continues as critics find the company isn’t moving fast enough to turn itself around. On the other end, Wall Street expects Target to post a profit of $2.54 per-share on $27.4 billion in revenue which would be an impressive 50% profit increase. Some of its biggest peers have already reported fourth-quarter earnings but investors have big expectations for its holiday quarter. We already know Target had a good season as it revealed that sales grew 17% during the holidays which on its own is enough to outpace Walmart (NYSE:WMT), which just reported a 9% holiday quarter boost. But, this is a slight slowdown from its third quarter’s 21% growth so we’ll learn whether Target continued to win market share in each of its core selling categories. Nordstrom (NYSE: JWN) and Box Inc. (NYSE: BOX) will board the reporting train after market close.

Wednesday

Dollar Tree (NASDAQ: DLTR) will report before market open with Okta (NASDAQ: OKTA), Snowflake (NYSE SNOW) known for its ‘too hot to handle IPO’, Vroom Inc (NASDAQ: VRM), Splunk (NASDAQ: SPLK) will reveal their earnings after market close.

Thursday

Kroger (NYSE: KR) will report before market open with Opendoor Technologies (NASDAQ: OPEN), Broadcom (NASDAQ: AVGO), SmileDirectClub (NASDAQ: SDC), Costco and The Gap (NYSE: GPS) closing the earnings week after market close.

This week will be full of retail that was dramatically changed by the pandemic. We will also get a better idea if Zoom can maintain its success beyond the pandemic as despite its many benefits, digital communication didn’t measure up to in-person socializing.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Airbnb Delivered a Loss in Its First Post-IPO Earnings Report

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With its first earnings report as a public company, Airbnb Inc (NASDAQ: ABNB) posted an annual loss. Annual deficit of $4.6 billion was the result of the coronavirus pandemic ravaging the travel industry. But the uptick in local travel, combined with a successful cost cutting strategy helped the company’s market capitalization to exceed more than $100 billion which makes it more valuable than Marriott International Inc., (NASDAQ: MAR), Hilton Worldwide Holdings Inc. (NYSE: HLT) and Hyatt Hotels Corp. (NYSE: H) combined. Airbnb also had a far less sever revenue decline compared to its main rivals, Expedia (NASDAQ: EXPE) and Booking.com (NASDAQ: BKNG), which were down 67 and 63 per cent respectively over the same period. Airbnb’s share price nearly doubled from their IPO price.

There’s no going back

The pandemic did initially crushed the home-sharing giant’s business when lockdowns were imposed across the globe. But, Airbnb avoided a disastrous outcome thanks to an unforeseen increase in local excursion. Although yearly revenue declined, it wasn’t as much as analysts expected as no one considered that people will find a way to get out of their everyday routine, even if it’s by making a local trip. The company’s CEO Brian Chesky doesn’t think to the world of travel will ever go back to how it was before COVID-19 started its relentless march across the globe but the company found a way to live with that.

Capitalize on new trends

Mr. Chesky outlined how the health crisis had reshaped the business, pointing to a significant uptick in long-term stays as people around the world work from home which will offer the freedom to live more nomadic lives. Some large employers have said they would offer that flexibility even when things return to normal, and Airbnb can capitalize on that trend.

Dealing with the pandemic

Although hotel chains with a significant footprint in big cities suffered, Airbnb redesigned the company’s website and app to show prospective travelers everything from lavish beach houses to rustic cabins nearby. Combined with cost-cutting efforts, it managed to weather to storm that paralyzed the whole world.

Figures

Fourth-quarter revenue fell 22% YoY to $859 million with full-year revenue dropping 30% to $3.3 billion. Fact Set analysts expected fourth-quarter revenue drop of 33% and and a drop of 32% for the full year.

The company trimmed a quarter of its staff, paused noncore operations and slashed its hefty marketing budget to keep expenses down. Although it couldn’t avoid a loss, the $3.9 billion loss for the quarter ended in December also includes IPO-related costs of $2.8 billion and an $827 million adjustment for the loans it needed to navigate through the crisis. Last year’s fourth quarter saw a loss of $351 million, but the latest loss brought the company’s full-year deficit to $4.6 billion, which is more than its losses in the previous four years combined, exceededing the average forecast of analysts surveyed by FactSet.

Airbnb’s full-year expenses rose 31% to $6.97 billion on the back of IPO-related stock compensation in the fourth quarter. However, before accounting for stock compensation, expenses in each category, from product development to operations and support services were lower. In this case, sales and marketing expenses declined 66% in 2020 compared to 2019 whereas when those costs are accounted for, the same expenses rose 44%.

Like other companies, Airbnb offered an adjusted metric that excludes such costs so the negative EBITDA shrank to $251 million compared to $253 million in the previous year. On the same basis, its Q4 loss narrowed significantly to $21 million from 2019’s Q4 loss of $276 million.

Outlook

Airbnb declined to give any formal guidance for the year ahead due to uncertainty of the undergoing health crisis. While the third quarter is the busiest for Airbnb, the company has turned a profit in that period since 2018, even during the pandemic, the first quarter is the slowest. But it expects bookings in the three months through March to be better than in the same period last year, when the health crisis first struck, but still below 2019 levels. The home sharing company plans to invest in marketing and product development during the first half of this year, so it is positioned to benefit from an expected rebound in the second half that the whole travel industry is hoping for. Management assured investors that costs will be controlled from soaring to pre-pandemic levels.

Airbnb’s valuation plummeted to $18 billion nearly a year ago, as it raced to secure funds to weather the crisis. Its rapid growth also came with its share of challenges as homeowners from Arizona to Florida and Massachusetts are campaigning for laws to govern short-term rentals as they mind the increased noise, as well as connect it to crime and falling property values. The bottom line is that remote work helped Airbnb’s earnings hold up better than expected amid a crushed travel industry and it could easily be the source of its future revenue. It suffered heavy losses, mostly due to costs related to its long-awaited market debut in December, but it is also confident about its post-Covid-19 prospects as it adapts to new lifestyle trends.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Moderna Misses Expectations But Things Are More Than Fine

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Moderna (NASDAQ: MRNA) saw its stock jump on Thursday despite growing losses, after the Covid-19 vaccine-maker reported more than double the revenue Wall Street predicted. Moderna missed EPS expectations with revenue far surpassing analyst forecasts as the company first began to recognize revenue from sales of its COVID-19 vaccine in December 2020. The loss was simply a result of heavy investment to increase production of its COVID-19 vaccine.

The company has spent the past two months producing and shipping its much-awaited coronavirus vaccine but its fourth-quarter is merely the surface of its vaccine success. In 2021, Moderna plans to manufacture 600-700 million doses of its COVID-19 vaccine but it should be able to expand its capacity to 1.4 billion doses in 2022 due to heavy capital investments, all of which should result in massive profits.

Q4 and FY 2020

For the fourth quarter ended December 31s, quarterly loss of $0.69 per share was below Zacks Consensus Estimate of $0.25 but Moderna brought in $570.75 billion in sales. That crushed the average estimate of analysts surveyed by FactSet for $279.4 million andsurpassing the Zacks Consensus Estimate by 74.76%. Just one year ago, revenues amounted to $14.06 million but until its mRNA-1273 coronavirus vaccine, the company had never brought an approved medicine to the market.

Losses grew to 69 cents per share after a 37-cent per-share loss in the year-ago period, whereas analysts expected a 34-cent loss. Although a big portion of revenue still came from the grant received from the Biomedical Advanced Research and Development Authority to advance its Covid vaccine, for the first time,Moderna had product sales, and they amounted to $199.87 million as the company began recognizing Covid vaccine sales in December. Although losses widened in 2020, Moderna’s sales skyrocket to $803.4 million.

Possible threat

One of the biggest risks ahead for all vaccine makers is the prevalence of new coronavirus variants. To tackle this, Moderna is investigating two upgrades. The first is actually a third dose of vaccine that would increase neutralizing antibody levels to better fend off new strains. The second is a strain-specific upgraded version which has been moved into preclinical and phase 1 trials as of end of January. Moderna is designing it to target the. If successful, the company should be able to quickly adapt it to protect against future strainsalthough it is designed to target the South African variation.

Teenagers

In early December, Moderna began a phase 2/3 trial of its covid vaccine in young adults who are 12 to 17years old. The data will be reported in spring and should result in Emergency Use Authorization just in time for the back-to-school period in September. But as of last month, Moderna didn’t have enough adolescent volunteers.

Teens aren’t at the greatest risk from serious COVID-19 complications but they play a role in the transmission of the virus, so their vaccination is another  important element in containing the pandemic.

2021

The company expects $18.4 billion in full-year 2021 sales of its Covid vaccine. The figure is based on already inked advance purchase agreements but additional discussions are ongoing for both 2021 and 2022. That outlook shattered forecasts as analysts expected $11 billion. Furthermore, the company said it plans to make 700 million doses of its vaccine this year, while still working to bring that capacity up to 1 billion. In 2022, Moderna expects be able to produce 1.4 billion doses.

Chief Executive Stephane Bancel called 2020 a historic year for the company as it trailed Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) by a week in the U.S by gaining emergency use authorization. The vaccine is Moderna’s first commercial product with 32 million doses having been administered in the U.S. to millions of people around the world.

In 2020, Moderna went from knowing mRNA vaccines can be highly efficient it went to cash-flow generating commercial company that is helping save the world form the claws of an invisible enemy. The latest reported quarter ended a milestone year for the biotech company. 2020 was a year in which the world went dark but the pandemic helped Moderna shine as it provided us with a glimpse of light at the end of the tunnel. Since the beginning of 2021, its shares gained 38.6%, greatly exceeding S&P 500’s gain of 4.5%.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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