Cannabis producer and retailer SNDL agreed to buy the shares it doesn’t already own of manufacturer The Valens Co. in a deal the Alberta-based business says will create “a dominant” vertically integrated operator in Canada.
The proposed all-stock deal is worth roughly 138 million Canadian dollars ($106 million), the companies announced in a Monday news release.
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SNDL, which changed its name from Sundial in July, will pay Valens’ shareholders 0.3334 of a common share of SNDL for each Valens share they possess.
This isn’t the first time the two companies have come together for a deal.
In early 2021, SNDL acquired 16 million common shares of Valens, giving it a 10.1% stake in the British Columbia-based company.
In a 2021 financial filing, SNDL had said it “acquired the securities for investment purposes.”
According to the SNDL release, the deal to buy Valens outright would catapult the company into
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