- Village Farms International (NASDAQ: VFF) secures favorable amendment to its credit agreement with Farm Credit Canada.
- The FCC loan includes improved financial covenants and a variable interest rate below 8.0%.
- The amendment supports Village Farms' strategic expansion in the cannabis sector, with the loan maturing on May 3, 2027.
Village Farms International, Inc. (NASDAQ: VFF) has successfully negotiated a favorable amendment to its credit agreement with Farm Credit Canada (FCC), providing the company with improved terms and greater financial flexibility. This change aligns with Village Farms' strategic focus on expanding its cannabis operations internationally.
The key amendment to the Fresh Produce loan involves improved financial covenants that eliminate the need for continuous waiver requirements, thereby supporting the company’s strategic growth initiatives. The FCC loan, which carries a variable interest rate below 8.0%, is set to mature on May 3, 2027. Other material terms of the loan remain unchanged, reflecting Village Farms' significant business expansion since the original credit agreement in 2013.
Michael DeGiglio, Chief Executive Officer of Village Farms, stated, “Today’s announcement reflects our long-standing, collaborative relationship with FCC and their continued support of our growth strategy. More favorable financial covenants on our FCC loan will enable us greater flexibility to make further growth investments in the future. We believe this amendment demonstrates strength in our business, which is positioned for a strong year of growth in 2025.”
With a focus on the high-growth cannabis and CBD markets, Village Farms continues to leverage its extensive experience in controlled environment agriculture to capitalize on new opportunities. The company's expansion strategy includes targeted international markets and strategic investments in cannabis-related sectors. Village Farms is also planning to enter the U.S. high-THC cannabis market, subject to regulatory compliance.
