Village Farms International Inc.

Village Farms International Inc. (TSX: VFF) owns and operates agricultural greenhouse facilities and produces, markets, and sells tomatoes, bell peppers, and cucumbers. 

Delisting of VFF shares from the Toronto Stock Exchange:

• On 14 December 2021, Village Farms International, Inc. (TSX: VFF) announced the voluntarily delisting of its shares from the Toronto Stock Exchange while the VFF shares continued being listed on the Nasdaq Capital Market ("Nasdaq") since February 2019. The company’s trading volume of common shares would not sustain the expenses and administrative needs as per the TSX listing. However, the management is optimistic regarding its Nasdaq listing, which provides sufficient liquidity and the cost savings from the elimination of TSX listing fees and associated professional fees which would enhance its shareholders value. Henceforth, from 31 December 2021, Village Farms' common shares will no longer be listed or traded on the TSX.
  

Q3FY21 Financial Highlights:

• In Q3FY21, the company reported strong sales growth of USD 72.442 million, as compared to USD 43.037 million in pcp.
• The company saw a surge in its input costs which has resulted to a loss before taxes and earnings of USD 13.522 million in 9MFY21, surged from a loss of USD 0.901 million in pcp.
• Income before taxes and earnings stood at USD 1.784 million, as compared to a loss of USD 0.450 million in pcp.
• The company reported a net income of USD 0.745 million, surged from USD 0.520 million in pcp.

Q3FY21 Income Statement Highlights (Source: Company Report) 

Stock Recommendation

The Management confirmed that it has received approval for voluntary delisting of VFF’s common shares from the Toronto Stock Exchange (TSX) after the close of markets on December 31, 2021 and would trade only on NASDAQ stock exchange. The above is expected to eliminate the TSX listing fees and related professional fees and would subsequently result into savings of time and effort required to maintain a dual listing and would enhance the shareholder’s value. Notably, VFF shareholders can trade their common shares through their respective brokers on Nasdaq. Hence, considering the aforesaid facts, the position on the VFF Stock trading on TSX has been closed at CAD 8.78 as on December 24, 2021.

One-Year Technical Price Chart (as on December 24, 2021). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.