The Valens Company (TSX:VLNS, OTCQX:VLNCF) announced that its shareholders have voted overwhelmingly in favour of the resolution approving the plan of arrangement under which SNDL Inc will acquire all of the issued and outstanding common shares of the company.
The plan of arrangement is on the basis of 0.3334 of an SNDL common share bring offered for each outstanding Valens common share.
Over 96% of votes cast at the company's special meeting of shareholders held on November 29, 2022, were in favour of the resolution.
"With this announcement, we are one step closer to combining two best-in-class cannabis companies that have extremely complementary assets to create a true market leader. This pro forma company will create Canada's first large vertically integrated cannabis company that unites SNDL's exceptional balance sheet and largest cannabis retail network in Canada with Valens' low-cost manufacturing platform. We look forward to taking Valens' brands to new heights and unlocking 2.0 products for the SNDL platform," said Tyler Robson, chief executive officer of The Valens Company in a statement.
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"We believe the pro forma company provides investors with attractive exposure not only to the highest revenue generating cannabis company in Canada trading well under its tangible book value but also a dominant platform that can become a global leader in cannabis," he added.
The arrangement is expected to close in January 2023, subject to the satisfaction and/or waiver of the closing conditions, including, among other things, final court approval from the Ontario Superior Court of Justice.
The Valens Company is a global leader in the end-to-end development and manufacturing of innovative, cannabinoid-based products. It is focused on being the partner of choice for leading Canadian and international cannabis brands by providing best-in-class, proprietary services including CO2, ethanol, hydrocarbon, solvent-less and terpene extraction, analytical testing, formulation and product development and custom manufacturing.
Contact the author at jon.hopkins@proactiveinvestors.com