On November 29th, 2022, The Valens Company Inc. (TSX:VLNS) (NASDAQ:VLNS) announced that its shareholders voted in favor of a resolution approving SNDL Inc.'s acquisition of all issued and outstanding common shares of Valens, on a per share basis of 0.3334 SNDL common shares for each Valens common share, subject to the terms of the arrangement agreement entered into by Valens and SNDL on August 22nd, 2022 ("Agreement"). Valens and SNDL are parties to the Agreement. At the special meeting of shareholders held on November 29th, 2022, over 96% of the votes cast were in favor of the resolution.
With this announcement, we are one step closer to the merger of two leading cannabis companies with extremely complementary assets, creating a true market leader. The newly formed company will become Canada's first large-scale vertically integrated cannabis company, combining SNDL's excellent balance sheet and Canada's largest cannabis retail network with Valens' low-cost manufacturing platform. "We look forward to taking the Valens brand to new heights and developing 2.0 products for the SNDL platform," said Tyler Robson, CEO of Valens. "We believe that this newly formed company not only offers attractive risk exposure for investors, but is also Canada's largest revenue-generating cannabis company with a book value far below its actual value, and a dominant platform that could become a global cannabis leader.
This arrangement is expected to conclude in January 2023, subject to meeting and/or waiving the termination conditions outlined in the agreement, including final court approval from the Ontario Superior Court of Justice (Commercial List).
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