VANCOUVER - Village Farms International, Inc. (NASDAQ: NASDAQ:VFF), a producer of high-value, plant-based consumer goods, has amended and extended its C$10 million revolving credit facility with a Canadian chartered bank. The maturity date of the Operating Loan, previously set for May 24, 2024, has been pushed to May 24, 2027, reflecting the company's considerable growth since the original credit agreement in 2013.
The amendments introduced offer Village Farms additional borrowing options, enhancing financial flexibility. These options include advances based on various benchmarks, such as the Canadian Prime Rate, Base Rate, US Prime Rate, and the Canadian Overnight Repo Rate (CORRA), along with the already available Secured Overnight Financial Rate (SOFR).
Village Farms, known for its large-scale, controlled environment agriculture, has a strong foundation as a leading fresh produce supplier to North American retailers. It has also ventured into the cannabis and CBD markets through its subsidiaries. Pure Sunfarms, owned by Village Farms in Canada, is recognized as one of the largest cannabis operations globally and the lowest-cost greenhouse producer in the region.
Additionally, the company holds an 80% stake in Rose LifeScience, a key commercialization expert for cannabis products in Québec, and operates Balanced Health Botanicals, a prominent CBD brand in the United States.
This news article is based on a press release statement.
InvestingPro Insights
Village Farms International (NASDAQ: VFF) has shown resilience and adaptability in its financial strategies, as evidenced by the extension of its revolving credit facility. This move underlines the company's commitment to maintaining robust financial health and securing its growth trajectory. To provide an even clearer picture of Village Farms' current financial standing, we turn to the latest data and insights from InvestingPro.
InvestingPro Data shows that Village Farms is trading at a low Price / Book multiple of 0.44, suggesting that the company's stock might be undervalued relative to its book value. Additionally, despite the challenges outlined in the article, Village Farms has managed to achieve a significant revenue growth of 20.76% in Q1 2023 on a quarterly basis, highlighting the company's ability to expand its top-line figures.
However, the company's P/E Ratio stands at -4.6, indicating that it may not be profitable at this time, which aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Moreover, the stock has experienced high price volatility, as reflected in the 1 Month Price Total Return of -23.53%, yet it has also recorded a strong return over the last year, with a 1 Year Price Total Return of 97.64%.
For investors seeking to delve deeper into Village Farms' performance and potential, InvestingPro offers additional insights. There are currently 13 InvestingPro Tips available for VFF, providing a comprehensive analysis of the stock's financial health and market behavior. For those interested in accessing these tips and enhancing their investment strategies, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the provided data and tips, investors can make more informed decisions regarding Village Farms International, considering both its recent strategic financial moves and the broader market context.
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