Valens Cannabis Company Raises $46M Via Bought Deal Offering Of Units

The Valens Company Inc. VLNS VLNCF has secured some $46 million in financing through a bought deal public offering of its units.

The British Columbia-based cannabis company said Tuesday it had sold some 13,940,300 of its units at $3.3 per unit, including 1,818,300 units sold pursuant to the exercise of the underwriters’ over-allotment option.

Each Unit is comprised of one common share and one-half of a common share purchase warrant of the Company, with each warrant allowing the purchase of one common share in three years following the offering’s closing at $4.15 per warrant share.

Valens intends to use a chunk of the money it raised - $28 million - to fund future acquisitions, although none of the proceeds will be used for its recently announced deal to purchase Green Roads and its majority-owned manufacturing subsidiary for $40 million in cash and stock, as well as business expansion in both North America and internationally.

The also company plans to spend $5 million on capital expenditures.

The remaining $13 million will be used for working capital requirements and other general operating expenses.

Stifel Nicolaus Canada Inc. was a lead underwriter and sole book-runner for the offering, alongside a syndicate of underwriters including ATB Capital Markets Inc., A.G.P./Alliance Global Partners, Canaccord Genuity Corp., Desjardins Securities Inc., Haywood Securities Inc., M Partners Inc., and Research Capital Corporation.

Stikeman Elliot LLP served as legal advisor to Valens for the offering, while Borden Ladner Gervais LLP acted as legal counsel to the underwriters.

Photo by Jhon David on Unsplash

Posted In: CannabisM&ANewsPenny StocksFinancingOfferingsSmall CapMarkets
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