Evidently there is still a level of M&A occurring within the Canadian cannabis space. The Valens Company (TSX: VLNS) this morning announced that it will be making an effort to step further into the craft cannabis space via the acquisition of Citizen Stash (TSXV: CSC) via an all share transaction.
Pegged at a valuation of $54.3 million, shareholders of Citizen Stash are to receive 0.162 of a common share of Valens for every share held. Pricing is said to represent a 35.1% premium to shareholders.
The transaction itself is expected to be immediately accretive, before synergies, with the purchase price reflecting a revenue multiple of 4.3x annualized revenue for 2021, while also enabling Valens to enter the flower and pre-roll space within the sector.
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The arrangement is subject to the approval by two thirds of the shareholders of Citizen Stash, with a meeting to be held later this year.
The Valens Company last traded at $3.07 on the TSX.
Information for this briefing was found via Sedar and The Valens Company. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
