UPDATE: Superior Court approves Valens, SNDL deal
Published on January 6, 2023 by oz. staff
UPDATE: Jan. 6, 2023:
The Ontario Superior Court of Justice has granted a final order approving the acquisition of The Valens Company by SNDL.
The all-stock deal is worth $138 million.
It has not yet closed, but is expected to this month.
Original: Dec. 2, 2022:
SNDL’s deal to buy The Valens Company is a step closer to closing in January 2023.
Valens shareholders have voted in favour of the sale.
Calgary-based SNDL made a move to acquire the company in an all-stock transaction valued at $138 million, announced in August.
The sale price works out to about $1.26 per Valens share; they traded at $12 apiece in May 2021, but borrowing and job cuts have since plagued their operations. Valens has extraction and manufacturing facilities in Kelowna. They own the brands Citizen Stash, LYF Edibles, Versus, and Green Roads in the US.
RELATED: The Valens Company suffered significant loss in 2021
More than 96% of shareholders voted in favour of the sale.
SNDL CEO Zach George said in August that the companies have been commercial partners since legalization.
“SNDL’s existing consumer packaged cannabis business will be transformed by Valens’ high-quality extraction, processing, and manufacturing capabilities and aligns well with our strategic vision to delight consumers with a full range of quality cannabis products and experiences,” said George.