The Valens Company borrows $40 million from Ontario lender
Published on December 17, 2021 by oz. staff
The Valens Company is borrowing $40 million from a private institutional lender in Ontario.
The loan is from ‘2361380 Ontario Limited’ at a 10% interest rate.
Valens stock continues to nosedive, significantly down since this spring, sliding from a high of $12 in May to $3 in December. Its next financial update is expected in February.
The company recently laid off a handful of employees in Kelowna.
• RELATED: Layoffs at Valens; still fast growing, says CEO
“This is a very attractive cost of capital and a non-dilutive financing solution that provides more financial flexibility, fewer covenants and restrictions and better enables us to aggressively penetrate our target markets and create shareholder value,” says Valens president Jeff Fallows.
“This transaction, not only funds our current business plan but also strengthens our balance sheet. As a result, we do not anticipate the need to raise additional equity capital in the near term,” says Fallows.
CEO Tyler Robson says the cash with help the company “accelerate its aggressive growth strategy, further fund its Canadian operations, and capitalize on new growth opportunities as the company works toward expanding its presence in the United States.”
Valens was recently listed on the NASDAQ.