Kelowna, British Columbia-based marijuana extractor The Valens Co. announced a 54.3 million Canadian dollar ($43 million) deal to acquire premium flower company Citizen Stash Cannabis Corp.

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The all-stock transaction will see shareholders of Mission, British Columbia-based Citizen Stash receive 0.162 Valens shares for each Citizen Stash share, representing a 35.1% premium for Citizen Stash shares based on the companies’ closing share prices on Aug. 27.

The acquisition “is expected to be accretive to Valens in 2021 and 2022 before synergies, and will provide Valens with strategic, asset-light expansion into flower and pre-rolls,” the Kelowna-based company said in a Tuesday news release.

Citizen Stash, formerly called Experion Holdings, has more than 40 product listings with provincial cannabis boards, according to the release.

“Citizen Stash operates a unique, asset-light platform comprised of a network of craft contract growing partners from which it selectively sources premium bulk flower grown from Citizen Stash’s industry leading proprietary genetics,” the release said.

Valens cited “several potential revenue synergies” to be found in the combined company, including “new premium strains” and entering new product categories with the Citizen Stash brand.

Potential cost synergies could be found through “Valens’ position as the largest bulk purchaser of cannabis biomass in the Canadian market,” plus cost savings in packaging and logistics.

The acquisition is subject to approval by Citizen Stash shareholders as well as court and stock exchange OKs.

It is the third purchase announced this year by Valens, coming on the heels of the acquisitions of LYF Food Technologies, a deal that closed in March, and Florida CBD company Green Roads, which closed in June.

Citizen Stash shares trade as CSC on the TSX Venture Exchange.

Valens shares trade as VLNS on the Toronto Stock Exchange and as VLNCF on the Nasdaq.