Canadian cannabis product manufacturer The Valens Co. announced a bought deal offering worth $22.5 million (28.1 million Canadian dollars) with an over-allotment option.
Net proceeds from the offering will be used “to continue to pursue strategic growth initiatives in North America, provide funding for working capital and for general corporate purposes,” British Columbia-based Valens noted in a Tuesday night news release.
Under the bought deal offering, underwriters Stifel GMP and Alliance Global Partners will purchase 10,613,207 Valens units for CA$2.65 ($2.13) per unit.
Each unit includes one common share and half of a common share purchase warrant, which will be exercisable to buy another common share within 48 months of closing at CA$3.20.
An over-allotment option will allow the underwriters to purchase an additional 15% of the units sold for 30 days after closing.
The offering is expected to close in early April, subject to approvals.
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Valens plans to list the new common shares and warrant shares (VLNS) on both the Toronto Stock Exchange and the Nasdaq exchange, where it has listed since late 2021.
Valens filed a shelf prospectus in January 2021 to issue up to CA$150 million in securities.