Delta-headquartered Village Farms Income Fund (TSX:VFF.UN) has completed its conversion from an income trust into a publicly listed corporation, Village Farms International Inc.
It will continue trading on the TSX with the symbol VFF on January 5, 2010.
The greenhouse grower of tomatoes, bell peppers and cucumbers said the conversion would allow for greater access to equity capital markets and eliminate growth restrictions as an income trust.
Village Farms and many other income trusts have converted back into a corporate structure after federal finance minister Jim Flaherty announced in 2006 that income trust distributions would be taxed the same as corporate dividends by 2011. He also placed growth limits on business trusts.
The new rules were aimed at preventing possible corporate income tax losses since income trusts pay relatively little income tax since they distribute the bulk of their profits to unitholders.
Village Farm's unit price range during the past week: between $0.64 and $0.73; 52-week high: $1.65; 52-week low: $0.50.