The Valens Company (TSX:VLNS, OTCQX:VLNCF) Inc has announced the closing of its previously announced bought deal public offering of units for total gross proceeds of approximately C$32.3 million.
The company said it sold 12,205,186 units at a price of C$2.65 each, including 1,591,979 units sold under the exercise of the underwriters' over-allotment option.
Each unit in the offering is comprised of one common share in the capital of the company and one-half of a common share purchase warrant. Each whole warrant will be exercisable to acquire one additional common share for a period of 48 months following the closing date of the offering at an exercise price of C$3.20 per warrant share, subject to adjustment in certain events.
The company said it intends to use the net proceeds from the offering to continue to pursue strategic growth initiatives in North America, to provide funding for working capital, and for general corporate purposes.
READ: The Valens Company inks agreement for a 'bought deal' offering to raise aggregate gross proceeds of C$28.125 million
Stifel Nicolaus Canada Inc and A.G.P./Alliance Global Partners acted as co-lead underwriters for the offering, along with a syndicate of underwriters including ATB Capital Markets Inc, Haywood Securities Inc, M Partners Inc, and Raymond James (NYSE:RJF) Ltd.
In connection with the offering, the company filed a prospectus supplement dated March 30, 2022, to the amended and restated final short form base shelf prospectus dated March 28, 2022, in each of the provinces of Canada other than Quebec. The prospectus supplement was also filed with the US Securities and Exchange Commission as part of the company's effective registration statement on Form F-10 previously filed under the US/Canada multi-jurisdictional disclosure system.
The Valens Company is a manufacturer of cannabis products. It provides proprietary cannabis processing services, in addition to product development, manufacturing, and commercialization of cannabis consumer packaged goods.
The company's products are formulated for the medical, health and wellness, and recreational consumer segments, and are offered across all cannabis product categories with a focus on quality and innovation. It also manufactures, distributes, and sells a wide range of CBD products in the United States through its subsidiary Green Roads, and distributes medicinal cannabis products to Australia through its subsidiary Valens Australia.
Contact the author at jon.hopkins@proactiveinvestors.com