VFF - Why Village Farm International Shares Are Sinking Today
Shares of Canadian cannabis producer and greenhouse produce grower Village Farms International (NASDAQ: VFF) were sinking 9.7% lower as of 11:33 a.m. EDT on Thursday after dropping as much as 13.7% earlier in the day. The primary reason for the sharp decline was the company's announcement of a bought-deal public offering of 2.66 million shares. Canadian marijuana stocks, in general, also pulled back after HEXO provided a disappointing sneak peek of its Q4 revenue and highlighted the uncertainty in the broader Canadian cannabis market.
Village Farm's latest public offering dilutes the value of existing shares. This offering represents a little over 5% of Village Farms' total outstanding shares. However, an even bigger reason for the stock's drop today was the price tag of that offering, which reflected a 10.8% discount from the stock's closing price on Wednesday.
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