The Valens Company Inc. (TSX:VLNS) (OTCQX:VLNCF) revealed Monday it has completed its previously announced acquisition of Citizen Stash Cannabis Corp. (TSXV:CSC) (OTCQB:EXPFF) (FRANKFURT: MB31) for $54.3 million in stock.
Under the terms of the arrangement, Citizen Stash shareholders are entitled to 0.1620 of a Valens common share for each Citizen Stash Common Share held. The outstanding in-the-money Citizen Stash options were transferred to Citizen Stash in exchange for the applicable entitlement to the in-the-money amount for such options, payable in Valens Shares, net of applicable withholdings.
"With the completion of this strategic acquisition, Valens is poised to strengthen its position in the recreational market with the ownership of premium cannabis genetics, strains and products," Tyler Robson, CEO and chair of Valens' board of directors. "As we enter the premium flower category, Valens now boasts a manufacturing and brands portfolio that focuses on two high growth categories of premium flower and 2.0 products. This is just the first step into the premium cannabis product category and consumers can stay tuned to see how we further leverage Citizen Stash's asset-light genetics portfolio to launch new innovative products in the future."
The acquisition was approved at the special meeting of Citizen Stash security holders held on November 1, 2021, and by the Supreme Court of British Columbia on November 4, 2021. As a result of the closing, Citizen Stash common shares are expected to be delisted from the TSX Venture Exchange at the close of trading on or about November 12, 2021.
"I would like to thank all the Citizen Stash shareholders for their support over the years. Going forward as a combined company, Citizen Stash and Valens are well-positioned to be the leading cannabis company in Canada and beyond. It has been an honour to serve our shareholders and I look forward to the next chapter," said Jarrett Malnarich, CEO of Citizen Stash.
Price Action
Valens’ shares were trading 14.55% at $1.63 per share at the time of writing Monday morning.
Photo: Courtesy of Hans Eiskonen via Unsplash