Village Farms International Inc. (VFF, Financial) has successfully restructured its Canadian cannabis-related debt, merging three former loans into a single credit facility. This strategic move involves two of its current lenders and offers more favorable financial terms.
Under the new arrangement, the interest rate has been reduced by 50 basis points to fall below 8.0%, marking a significant improvement compared to previous terms. Additionally, enhanced financial covenants have been established as part of the refinancing.
The maturity date for this new credit facility is set for February 7, 2028, providing an extension from the earlier expiration date of February 7, 2026, for the previous loans. This refinancing effort aims to strengthen Village Farms' financial position by simplifying its obligations and optimizing the terms of its debt.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Village Farms International Inc (VFF, Financial) is $1.88 with a high estimate of $2.25 and a low estimate of $1.50. The average target implies an upside of 207.48% from the current price of $0.61. More detailed estimate data can be found on the Village Farms International Inc (VFF) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Village Farms International Inc's (VFF, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Village Farms International Inc (VFF, Financial) in one year is $1.02, suggesting a upside of 67.27% from the current price of $0.6098. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Village Farms International Inc (VFF) Summary page.
