SNDL Inc. (NASDAQ:SNDL) and The Valens Company Inc. (NASDAQ:VLNS) (TSX:VLNS) have entered into an arrangement agreement to combine their businesses and create a vertically integrated cannabis platform. Pursuant to the terms of the agreement, SNDL will acquire all of the issued and outstanding common shares of Valens, other than those owned by SNDL and its subsidiaries, by way of a statutory plan of arrangement.
Under the terms of the agreement, Valens' shareholders will receive, for each Valens Share, 0.3334 of a common share of SNDL. Based on the August 19, 2022 close of the SNDL shares on the Nasdaq Capital Market exchange, the consideration represents an implied value of CA$1.26 per Valens Share, for total consideration of approximately CA$138 million ($105.85 million). The implied offer price represents a premium of 10% based on a trailing 30-day volume-weighted average price of the Valens Shares, on the Toronto Stock Exchange up to August 19, 2022.
