The Valens Company (TSX: VLNS) is doing what it can to keep its operation funded, announcing last night it would be conducting a bought deal financing. The financing will see the company look to raise up to US$22.5 million.

Lead by Stifel Nicolaus Canada and Alliance Global, the offering will see the company sell units of the company at a price of C$2.65 per each. Each unit is to consist of one common share and one half warrant, with warrants valid for four years from the date of issuance and containing an exercise price of C$3.20 per share.

A total of 10.6 million units are expected to be issued under the offering, while the company has granted the underwriters an over-allotment option to expand that figure by up to 15%. The offering is expected to close by April 5, 2022.

Proceeds from the offering are to be used for general corporate purposes, working capital, and for strategic growth initiatives.

The funding follows the company last month announcing it is looking to cut costs by up to $20 million by year end, as it looks to remove excess expenses after a series of acquisitions conducted last year. $10 million in savings has reportedly already been found, with a further $10 million more yet to be found.

As of November 30, the company reported a cash position of $16.1 million, and has since sourced a $40.0 million term loan which is intended to fund the growth of the company.

The Valens Company last traded at $2.92 on the TSX.

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