Village Farms International Inc. has announced a significant transaction involving the entry into a Framework Agreement with Vanguard Food GP LLC, Vanguard Food LP, and certain subsidiaries, along with Kennedy Lewis Capital Partners Master Fund II LP and Sweat Equities SPV LLC. Under this agreement, Village Farms will contribute assets from its produce business to Vanguard in exchange for $40 million and 37.9% equity ownership in Vanguard LP. The Initial Investors will contribute $55 million, receiving 62.1% equity. Additionally, Charlie Sweat has been appointed Chairman of Vanguard's Board, with Michael A. DeGiglio serving as Interim CEO. Village Farms will retain ownership of its Texas and Canada greenhouse facilities, entering a supply agreement with Vanguard for fresh produce. This strategic move aims to bolster Vanguard as an independent company while allowing Village Farms to maintain a significant role in its operations.
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