The Valens Company Inc. (VLNS)

[FUNMAN]

Valens announces C$28.1M bought deal offering of units

IMO, the use of proceeds is not going as hoped for, i.e. for accretive strategic acquisitions. Until top and bottom line positive progress is evident to The Street, little PPS enthusiasm can occur. Valens is keeping the lights on, biding their time until USA legalization. Painfully, that appears to be becoming an ever more distant hope. - FUNMAN

05:31 PM | The Valens Company Inc. (VLNS) | By: Jessica Kuruthukulangara, SA News Editor

Valens (NASDAQ:VLNS) said a syndicate of underwriters will purchase, on a "bought deal" basis, 10.6M units of the company at C$2.65/unit for total gross proceeds of C$28.1M.

Each unit will be comprised of 1 share and 1/2 of a share purchase warrant.

Each warrant will be exercisable to acquire 1 additional share for a period of 48 months following the closing of the offering at an exercise price of C$3.20 per warrant share.

VLNS granted the underwriters an option to purchase up to such number of additional units as is equal to 15% of the units sold pursuant to the offering at the issue price to cover over-allotments, if any.

The option will be exercisable in whole or in part, at any time, for 30 days after the closing of the offering for any number of units, shares, warrants, or any combination thereof at a price equal to the issue price for a unit and a price to be agreed on for the shares and warrants.

VLNS plans to use the net proceeds from the offering to continue to pursue strategic growth initiatives in North America and for working capital.

Closing of the offering is expected to occur on or about Apr. 5.