The Valens Company Closes $26M Bought Deal Financing

The Valens Company Inc. VLNS VLNS closed its bought deal public offering of units of the company for total gross proceeds of approximately CA$32.3 million ($26 million). The company sold 12.21 million units at a price of CA$2.65 per unit, including 1.6 million units sold pursuant to the exercise of the underwriters' over-allotment option.

Each unit is comprised of one common share in the capital of the company and one-half of a common share purchase warrant. Each warrant will be exercisable to acquire one additional common share for a period of 48 months following the closing date of the offering at an exercise price of CA$3.20 per warrant share, subject to adjustment in certain events.

The company intends 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.

Stifel Nicolaus Canada Inc. and A.G.P./Alliance Global Partners acted as co-lead underwriters for the offering, along with a syndicate of underwriters including ATB Capital Markets Inc., Haywood Securities Inc., M Partners Inc., and Raymond James Ltd.

In connection with the offering, the company filed a prospectus supplement dated March 30, 2022 to the amended and restated final short form base shelf prospectus dated March 28, 2022 in each of the provinces of Canada other than Quebec. The prospectus supplement was also filed with the U.S. Securities and Exchange Commission.

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