The Valens Company enters $28M ‘bought deal’

Published on April 1, 2022 by oz. staff

Photo: Contributed

The Valens Company is working to raise more money for operations and growth.

The Kelowna-based cannabis company announced an agreement with Stifel Nicolaus Canada and A.G.P./Alliance Global Partners in a ‘bought deal’ worth more than 10.6 million ‘units’ at $2.65 per unit for $28.125 million.

The news release says each ‘unit’ will be comprised of one common share and one-half of one common share purchase warrant.

“The company plans 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,” Valens said in a statement.

Valens-focused investor forums reacted negatively.

Valens, which has a corporate office in Toronto and manufacturing facilities in Kelowna, took a significant loss in 2021 after making several acquisitions throughout the year.

The company has also significantly restructured, but hasn’t revealed how many jobs it has shed.

It’s shares have sunk to a low of $2.17 in 2022, the lowest price since 2016.

Late last year, they borrowed $40 million from an Ontario lender.