Village Farms (VFF) Faces Delisting Risk as Stock Price Falls Below $1

## Village Farms (VFF) Faces Delisting Risk as Stock Price Falls Below $1

Village Farms International, Inc. (VFF), a leading player in the controlled-environment agriculture industry, is facing a potential delisting from the Nasdaq Stock Market. The company received a notice from Nasdaq citing non-compliance with the minimum bid price requirement, which stipulates a closing bid price of at least $1.00. VFF’s common shares have consistently closed below this threshold since September 6, 2024.

Village Farms has been granted a 180-day grace period, extending until April 16, 2025, to regain compliance. During this period, the company’s shares will continue trading on the Nasdaq Capital Market. To regain compliance, VFF needs to achieve a closing bid price of $1.00 or above for 10 consecutive trading days.

If VFF fails to meet the minimum bid requirement by April 16, 2025, it could be granted an additional 180-day period to achieve compliance. However, if the company remains non-compliant after this extended timeframe, it faces delisting from the Nasdaq Capital Market. In this scenario, Village Farms would have the option to appeal the delisting decision to a Nasdaq Hearings Panel.

Despite the delisting threat, Village Farms continues to demonstrate strong performance in its core business areas.

In August, the company secured a new contract for its president and CEO, Michael A. DeGiglio, ensuring leadership stability. During the second quarter, Village Farms’ domestic branded recreational sales grew by 7% quarter-over-quarter and 34% year-over-year, reaching CA$41.8 million. The company also saw a notable increase in its cannabis EBITDA margin, rising by 90 basis points to 11.8%.

Village Farms’ strategic positioning in key markets and product categories continues to bolster its market share and operational metrics.

Its subsidiary, Pure Sunfarms, is expanding its footprint across Canada, while its wholly-owned Balanced Health Botanicals, a cannabinoid platform, operates 5.5 million square feet of high-tech CEA facilities in Texas. The company is also pursuing legal cannabis and CBD opportunities in the Asia-Pacific region and Europe.

Village Farms’ shares traded 2.0862% lower at $0.9119 per share on Monday.

The company’s ability to regain compliance with Nasdaq’s listing requirements will depend on its ability to increase its stock price, which will likely depend on its continued strong performance in the cannabis and greenhouse produce sectors.