Beverage shop owner SNDL Inc. said it would acquire cannabis producer Valens Company Inc. and combine the businesses in a $138 million stock transaction.
Under this agreement, SNDL will acquire all of Valens’ issued and outstanding ordinary shares in addition to those owned by SNDL and its subsidiaries.
Valens shareholders will receive 0.3334 shares of SNDL common stock for each Valens share they own.
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The offer implies a value of $1.26 per share for Valens, SNDL said, representing a 10% premium on Valens’ subsequent 30-day volume-weighted average price.
The companies believe their merger will result in more than $10 million in annual savings and increase SNDL’s overall cannabis market share to 4.5%.
SNDL, the company behind the Value Buds and Spiritleaf brands, said the transaction is expected to close in January.
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