Village Farms International Inc (VFF) News & EventsVFFNews & EventsVillage Farms International Inc

Company Reports Q2 Revenue of $63.98M with Record Cannabis Revenue of $53.5M

Reports Q2 revenue $63.98M vs. $59.9M last year. President and Chief Executive Officer Michael DeGiglio commented, "Our second quarter results continue to demonstrate the strength of our expanding global cannabis platform, driven by record cannabis revenues of $53.5 million as we continued to grow in target markets and product categories around the world. We delivered our fifth consecutive quarter of positive net income and EPS since we privatized our legacy produce business last year, and important to note that when excluding the one-time $4.3 million vendor settlement received in the second quarter of last year, consolidated adjusted EBITDA increased meaningfully year-over-year to $15.4 million with record Q2 cannabis performance."

Village Farms Delta 2 Greenhouse Expansion Progressing Well

Village Farms announced several operational updates regarding the ongoing capacity expansion project in its 1.1M square foot Delta 2 greenhouse in British Columbia. The D-2 expansion commenced last November to convert the remaining 550,000 square feet of the greenhouse to cannabis production in a series of project phases scheduled through the first half of next year. The company recently completed a successful first harvest in the first half of the expansion and announced it has commenced cultivation in the second half with an expected harvest date in late August. The company has also accelerated its timeline of planned technology upgrades in response to increasing demand, and will complete lighting and other technological upgrades in the D-2 expansion during the fourth quarter. President and CEO Michael DeGiglio commented, "Following the successful harvest we completed in the first half of the Delta 2 expansion last week, we are pleased to announce that we've commenced cultivation in the second half and are accelerating planned technology upgrades in response to increasing demand. These upgrades were previously expected to be installed in 2027 and importantly will not result in incremental capital expenditures as the equipment was already purchased earlier this year." Mr. DeGiglio continued, "We expect the completion of the Delta 2 expansion to result in greater economies of scale as we ramp to full production, and the acceleration of technology upgrades will enable us to meet increasing demand for higher quality flower from our domestic and international partners. We expect the Delta 2 expansion will ramp to its full production capacity of 40 metric tonnes of dried, trimmed flower in the third quarter of next year, positioning us well to drive continued profitable sales growth next year and through calendar year 2028."

Village Farms to Offer 7.5 Million Shares, Expected to Raise $15 Million

Village Farms announced it has entered into securities purchase agreements for the purchase and sale of 7,500,000 common shares of the company in a registered direct offering. The offering follows a series of meetings conducted with Village Farms management and two new institutional capital partners which created considerable interest in a direct investment that was not previously being contemplated. The offering is expected to result in gross proceeds of approximately $15M before deducting placement agent fees and other offering expenses. Net proceeds from the offering are intended to be used for working capital and general corporate purposes, and the company continues to expect that it will grow its cash balance through positive operating cash flow during the remainder of 2026. Upon closing of the offering, the company expects to have a total of 121,811,130 issued and outstanding common shares. Closing of the offering is expected to occur on or about June 8, subject to the satisfaction of customary closing conditions. A.G.P./Alliance Global Partners is acting as sole placement agent in connection with the offering.