The Valens Company (TSX: VLNS) this evening announced that it will be conducting a bought deal financing. The financing, lead by Stifel Nicolaus Canada, will see the company raise gross proceeds of $40.0 million.
Under the terms of the financing, 12.1 million units of the company are to be sold at a price of $3.30 per unit, with each unit containing one common share and one half of a common share purchase warrant. Each warrant is valid for a period of 3 years from the date of issuance and contains an exercise price of $4.15 per share.
An acceleration clause is also applicable on the warrants, which enables the company to accelerate the expiry of the warrants in the event the company trades above $8.25 for a period of ten consecutive days on a volume weighted basis. A 15% over-allotment option is also applicable to the financing.
Sponsored · Antimony Resources
Net proceeds from the raise are to be issued to pursue strategic growth initiatives in North America, as well as to provide funding for acquisitions and general corporate purposes.
The financing is currently slated to close June 1.
The Valens Company last traded at $3.63 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.
