Just postedthe-valens-company-closes-previously-announced-KELOWNA, BC, Jan. 29, 2021 /CNW/ - The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) (the "Company," "The Valens Company" or "Valens"), a leading manufacturer of cannabis derivative 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 $39,696,200. The Company sold 19,364,000 Units at a price of $2.05 per Unit, including 2,284,000 Units sold pursuant to the exercise of the underwriters' over-allotment option. Each Unit is comprised of one common share (a "Common Share") and one-half of a common share purchase warrant of the Company (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 Common Share (a "Warrant Share") for a period of three years following the closing date of the Offering at an exercise price of $2.55 per Warrant Share, subject to adjustment in certain events.
The Company plans to use $32 million of the net proceeds of the Offering to pursue strategic M&A and business expansion opportunities in Canada and international markets, with the balance of the net proceeds for working capital requirements and general corporate purposes. None of the proceeds of the Offering will be used for the previously announced proposed acquisition of LYF Food Technologies Inc.
ATB Capital Markets Inc. acted as lead underwriter and sole bookrunner for the Offering, along with a syndicate of underwriters including Stifel GMP, Canaccord Genuity Corp., Desjardins Capital Markets, M Partners Inc. and Mackie Research Capital Corporation (collectively, the "Underwriters").
Stikeman Elliot LLP acted as legal counsel to Valens on the Offering and Borden Ladner Gervais LLP acted as legal counsel to the Underwriters on the Offering.
In connection with the Offering, the Company filed a final short form base shelf prospectus in each of the provinces of Canada (the "Base Shelf Prospectus") dated January 28, 2021 and a prospectus supplement to the Company's Base Shelf Prospectus dated January 28¸2021 (the "Prospectus Supplement") in each of the provinces of Canada other than Quebec, which will be used in connection with the Offering
Copies of the Prospectus Supplement and the Base Shelf Prospectus are available on SEDAR at www.sedar.com. and may also be obtained from ATB Capital Markets Inc., 410-585 8th Ave SW, Calgary, Alberta, T2P 1G1.
No securities regulatory authority has either approved or disapproved the contents of this news release. The Offered Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release 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.