Post by
mesa1 on Aug 24, 2022 9:36am
Globe says Partheniou likes SNDL's bid for Valens ...
Valens Company Inc (The) (2) (C:VLNS)
Shares Issued 80,621,300
Last Close 8/23/2022 $1.05
Wednesday August 24 2022 - In the News
The Globe and Mail reports in its Wednesday, Aug. 24, edition that Stifel GMP analyst Andrew Partheniou says Valens Company investors should tender their shares to SNDL takeover bid. The Globe's Darcy Keith writes that SNDL plans to combine the businesses and create a vertically integrated cannabis company under the all-stock transaction valued at $138-million. The combined entity will have the largest reported revenues in the Canadian cannabis industry. Mr. Partheniou cut his share target to $1.20 from $3.50. Mr. Gupta says in a note: "The transaction does not come as a surprise given SNDL's existing 8-per-cent ownership and management having previously been vocal about their intentions. While the offer of $1.26/share is materially below our previous target, we believe it remains an attractive risk-adjusted opportunity for VLNS shareholders given 1) it removes solvency and financing risk with SNDL's robust balance sheet, 2) it is an all-share deal with VLNS shareholders receiving significantly more liquid SNDL shares which trade at a about a 40-per-cent discount to tangible book, and 3) the pro-forma entity benefits from greater Canadian retail distribution and a budding US cannabis strategy."
Comment by
ciretaka198 on Aug 24, 2022 12:37pm
cutting his share target to $1.20 does not make any sence. If he likes the deal why would he think that sundial would trade flat until the deal closes? Like someone said. Valens will trade as a proxy to sundials share price..
Comment by
lscfa on Aug 24, 2022 10:56pm
https://www.cantechletter.com/2022/08/valens-shareholders-should-take-the-deal-says-haywood/