On August 16, 2021, the Company acquired Balanced Health. Under the terms of the Acquisition Agreement, 4,707,113 common shares of the Company were issued to the owners of Balanced Health as part of the consideration.

On May 21, 2021, the Company announced that the Toronto Stock Exchange (“TSX”) had accepted a notice filed by the Company of its intention to make a normal course issuer bid (“NCIB”). The NCIB notice provides that Village Farms may, during the 12-month period commencing May 26, 2021 and terminating May 25, 2022, purchase up to 4,062,309 of its common shares, representing approximately 5% of the Company’s issued and outstanding common shares, by way of a NCIB over the facilities of the TSX, the NASDAQ Stock Market and/or through alternative trading systems in Canada and the United States. For the nine months ended September 30, 2021, the Company had re-purchased 536,052 common shares for a total cost $5,000. On January 20, 2021, the Company closed a 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 $12.40 per common share for gross proceeds of approximately $135 million before placement agent fees and other offering expenses.

On September 10, 2020, the Company sold 9,396,226 units through a registered direct offering. Each unit that was sold consisted of one common share of the Company and one-half (0.5) of a warrant to purchase a common share of the Company at a price of $5.80. On March 10, 2021, the warrants became exercisable and will expire on September 10, 2025. As of September 30, 2021, 3,188,680 of the warrants have been exercised.

Share-based compensation expense for the three and nine months ended September 30, 2021 was $1,820 and $5,705, respectively, and $472 and $1,329 for the three and nine months ended September 30, 2020, respectively.

Stock option activity for the nine months ended September 30, 2021 was as follows:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2021		3,067,322		C$	6.91		6.82	$	20,051
Granted		220,300		C$	12.17		9.49	$	—
Exercised		(177,000	)	C$	1.34		1.14	$	—
Outstanding at September 30, 2021		3,110,622		C$	7.60		6.36	$	13,035
Exercisable at September 30, 2021		2,069,329		C$	6.19		5.16	$	11,305

Performance-based shares activity for the nine months ended September 30, 2021 was as follows:

	Number of Performance-based Restricted Share Units			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2021		869,000		C$	7.51
Received		(370,000	)	C$	6.94
Outstanding at September 30, 2021		499,000		C$	7.93
Exercisable at September 30, 2021		114,000		C$	7.97