The Valens Company Inc (TSE:VLNS) (OTCQX:VLNCF) said it has closed a previously-announced bought deal public offering of units, generating total gross proceeds of more than C$46 million.
The cannabis company sold 13.9 million units, each containing a common share and half a share purchase warrant, at a price of C$3.30 per unit. The offering included more than 1.8 million units sold due to the underwriters exercising their over-allotment option. Whole warrants entitle their holders to purchase an additional share at an exercise price of C$4.15.
Valens said it plans to use C$28 million of the net proceeds to pursue opportunistic acquisitions and business expansion opportunities in North America and international markets, C$5 million for capital expenditures, with the balance for working capital requirements and other global general operating expenses.
READ: The Valens Company in expansion mode with entry into New Brunswick cannabis market
None of the proceeds will be used for the previously-nnounced proposed acquisition of Green Roads and its majority owned manufacturing subsidiary, Valnes noted.
The Valens Company is a leading manufacturer of cannabis products with a mission to bring the benefits of cannabis to the world. It provides proprietary cannabis processing services across five core technologies, in addition to best-in-class product development, formulation and manufacturing of cannabis consumer packaged goods.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel