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Subsequent Events
 12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

20

SUBSEQUENT EVENTS

On January 20, 2021, the Company closed its registered direct offering with certain institutional investors for the purchase and sale of an aggregate of 10,887,097 common shares at a purchase price of US$12.40 (approximately C$15.70) per unit for gross proceeds of approximately US$135 million (approximately C$171 million) before placement agent fees and other offering expenses. The net proceeds from this offering are intended to be used for general working capital purposes.

Upon closing of the offering there were 77,798,908 issued and outstanding common shares of Village Farms.

On February 5, 2021, the Company repaid in full the C$19.9 million (approximately US$15.6 million) promissory note, plus accrued interest of C$622 (approximately US$487), that it originally issued to Emerald as partial consideration for the November 2020 acquisition from Emerald of the 36,958,500 common shares of Pure Sunfarms that Village Farms did not own.

 

On September 10, 2020, the Company sold 9,396,226 units through a registered direct offering. Each unit that was sold consists of one common share of the Company and a one-half (0.5) of a warrant to purchase a common share of the Company at a price of US$5.80. On March 10, 2021 the warrants became exercisable, and they will expire on September 10, 2025. On March 10, 2021 1,773,585 of the warrants were exercised.

 

Effective March 15, 2021, Pure Sunfarms renewed its aggregate loan facility with two Canadian chartered banks and Farm Credit Canada. The renewal extends the maturity date by two years, includes an unlimited guarantee from Village Farms, limits the use of funds for capital expenditures and changes certain financial covenants.