Village Farms International Upsizes and Extends Canadian Cannabis Credit Facility

Key Highlights

• Credit Facility Upsized: Village Farms International, Inc. (NASDAQ: VFF) has increased its Canadian cannabis credit facility by CAD \$15 million.
• Extended Maturity: The maturity of the facility has been extended by one year, now due in February 2029.
• Initial Draw: An initial CAD \$5 million was drawn under a delayed draw term loan on February 20, 2026.
• Favorable Interest Rates: The facility maintains variable interest rates currently below 6.0%.
• Strong Financial Position: The company highlights a strong net cash position and robust credit profile, underpinned by record financial performance and leadership in global cannabis markets.

Details of the Credit Facility Amendment

Village Farms has amended its Canadian cannabis credit facility, upsizing the loan commitments by CAD \$15 million with its existing lenders. The facility’s maturities are now extended until February 2029, providing the company with additional flexibility for future investments and growth. The incremental funding comes as a delayed draw term loan, demonstrating lender confidence in the company’s financial health.

The company drew an initial CAD \$5 million from this facility as of February 20, 2026. All other terms of the credit facility remain unchanged, with variable interest rates currently below 6.0%, a notably competitive rate in the current market environment.

Management Commentary

“Today’s announcement demonstrates the strong credit profile of Village Farms established through record financial performance and continued leadership in global cannabis markets. We remain in a very strong net cash position, and are pleased with the collaborative relationship with our lenders who are eager to support our continued growth. Our access to capital is a strong competitive advantage, and we believe this incremental financing reflects a responsible use of our balance sheet to enhance existing operating capabilities while preserving significant optionality for additional accretive organic and acquisitive growth opportunities.”
— Michael DeGiglio, CEO of Village Farms International

Company Overview

• Canadian Operations: Village Farms’ wholly owned subsidiary, Pure Sunfarms, is one of the world’s largest cannabis operators, with 2.2 million square feet of greenhouse production. The company also owns an incremental 2.6 million square feet of greenhouse capacity for future expansion and holds an 80% stake in Quebec-based Rose LifeScience, a leader in cannabis commercialization.
• International Expansion: Village Farms exports medical cannabis from its EU GMP-certified facility in Canada to Germany, the UK, Israel, Australia, and New Zealand. The company is actively pursuing export business in new markets and has invested in international production assets, including wholly owned Leli Holland, which has one of 10 licenses to supply recreational cannabis for the Dutch Coffee Shop Experiment.
• US Strategy: In the United States, Balanced Health Botanicals, a fully owned subsidiary, is among the leading CBD and hemp-derived brands online. The company plans to enter the US THC market through various strategies, leveraging its Texas-based greenhouse assets (2.2 million square feet and 950 acres of undeveloped land), subject to compliance with federal and state laws.
• Clean Energy Initiatives: Through a partnership with Terreva Renewables, Village Farms Clean Energy (VFCE) produces renewable natural gas from landfill gas at its Delta RNG facility, receiving royalties on all revenue generated.

Implications for Shareholders and Potential Share Price Impact

• Enhanced Financial Flexibility: The upsize and extension of the credit facility significantly increase Village Farms’ financial flexibility, enabling the company to fund organic and acquisitive growth without major dilution or costly capital.
• Strong Credit Profile and Net Cash Position: Management’s ability to secure favorable financing terms at rates below 6.0% signals lender confidence and supports the company’s claims of robust financial health.
• Growth Opportunities: The additional capital provides optionality for investment in high-growth cannabis and plant-based CPG markets, both in Canada and internationally.
• US Market Entry: The company’s stated intention to enter the US THC market could be a significant driver of future growth and is a potentially price-sensitive development, contingent on regulatory changes.

Risks and Forward-Looking Statements

Investors should note that Village Farms’ forward-looking statements are subject to a range of risks, including but not limited to: the evolving legal and regulatory landscape for cannabis and hemp in the US and internationally; integration risks relating to recent acquisitions; operational risks in international expansion; variable product pricing; competition; retention of key personnel; and macroeconomic factors such as inflation, recessionary pressures, and rising energy costs.

Management emphasizes that forward-looking statements are based on reasonable assumptions but actual results may differ materially due to factors beyond the company’s control.

Contact Information

Sam Gibbons
Senior Vice President, Corporate Affairs
Phone: (407) 936-1190 ext. 328
Email: [email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on company disclosures as of February 23, 2026. Forward-looking statements are subject to risks and uncertainties. Investors should conduct their own due diligence and consult a financial advisor before making any investment decisions.

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