KELOWNA, BC, April 5, 2022 /PRNewswire/ - The Valens Company
Inc. (TSX: VLNS) (NASDAQ: VLNS) (the "Company," "The
Valens Company" or "Valens"), a leading manufacturer of
cannabis products, is pleased to announce the closing of its
previously announced bought deal public offering (the
"Offering") of units of the Company (the "Units") for
total gross proceeds of approximately CDN$32.3 million. The Company sold
12,205,186 Units at a price of CDN$2.65 per Unit, including
1,591,979 Units sold pursuant to the exercise of
the underwriters' over-allotment option.
Each Unit is comprised of one common share in the capital of the
Company (a "Common Share") and one-half of a Common Share
purchase warrant (each whole Common Share purchase warrant, a
"Warrant" and, collectively with the Units and the Common
Shares, the "Offered Securities"). Each Warrant will be
exercisable to acquire one additional Common Share (a "Warrant
Share") for a period of 48 months following the closing date of
the Offering at an exercise price of CDN$3.20 per Warrant Share, subject to adjustment
in certain events.
The Company intends to use the net proceeds from the Offering to
continue to pursue strategic growth initiatives in North America, provide funding for working
capital and for general corporate purposes.
Stifel Nicolaus Canada Inc. ("Stifel GMP") 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 Ltd. (collectively, the "Underwriters").
In connection with the Offering, the Company filed a prospectus
supplement dated March
30, 2022 (the "Prospectus Supplement") to the
amended and restated final short form base shelf prospectus dated
March 28, 2022 (the "A&R
Base Shelf Prospectus") in each of the provinces of
Canada other than Quebec. The Prospectus Supplement was also
filed with the U.S. Securities and Exchange Commission as part of
the Company's effective registration statement on Form F-10 (the
"Registration Statement") previously filed under the
U.S./Canada multi-jurisdictional
disclosure system.
Copies of the Prospectus Supplement and the A&R Base Shelf
Prospectus are available on SEDAR at www.sedar.com and EDGAR at
www.sec.gov, and a copy of the Registration Statement is available
on EDGAR at www.sec.gov. Copies of the Prospectus Supplement and
the A&R Base Shelf Prospectus may also be obtained in
the United States, upon request,
from the offices of Stifel, Nicolaus & Company, Incorporated at
Attention: Syndicate, One Montgomery
Street, Suite 3700, San Francisco,
CA 94104, by telephone at (415) 364-2720, or by email at
syndprospectus@stifel.com and in Canada, upon request, from Stifel GMP by email
at ECMCanada@stifel.com and from the offices of
A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor,
New York, NY 10022, or by
telephone at (212) 624-2060, or by email
at prospectus@allianceg.com..
No securities regulatory authority has either approved or
disapproved the contents of this news release. This news release is
for informational purposes only and shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be
any sale of the Offered Securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About The Valens Company
The Valens Company is a manufacturer of cannabis products. The
Company provides proprietary cannabis processing services, in
addition to product development, manufacturing, and
commercialization of cannabis consumer packaged goods. The Valens
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. The Company 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.
Notice regarding Forward Looking Statements
All information included in this press release, including any
information as to the future financial or operating performance and
other statements of The Valens Company that express management's
expectations or estimates of future performance, other than
statements of historical fact, constitute forward-looking
information or forward-looking statements within the meaning of
applicable securities laws and are based on expectations, estimates
and projections as of the date hereof. Forward-looking statements
are included for the purpose of providing information about
management's current expectations and plans relating to the future.
Wherever possible, words such as "plans", "expects", "scheduled",
"trends", "forecasts", "future", "indications", "potential",
"estimates", "predicts", "anticipate", "to establish", "believe",
"intend", "ability to", or statements that certain actions, events
or results "may", "should", "could", "would", "might", "will", or
are "likely" to be taken, occur or be achieved, or the negative of
these words or other variations thereof, have been used to identify
such forward-looking information. In this press release, forward
looking information and statements relate to, among other things,
the anticipated use of the net proceeds from the Offering. The
forward-looking events and circumstances discussed in this release
may not occur and could differ materially as a result of known and
unknown risk factors and uncertainties affecting the Company,
including risks regarding the COVID-19 epidemic, the cannabis
industry, market conditions, economic factors, management's ability
to manage and to operate the business and the equity markets
generally. The forward-looking information contained in this press
release is made as of the date hereof, and the Company is not
obligated to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws.
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SOURCE The Valens Company Inc.