The Valens Company Inc. (NASDAQ:VLNS) (TSX:VLNS) announced the mailing of its management information circular and related documents for the special meeting of valens shareholders in connection with the previously announced plan of arrangement under section 192 of the Canada Business Corporations Act whereby SNDL Inc. (NASDAQ:SNDL) will acquire all of the issued and outstanding common shares of the company, and in return Valens shareholders will receive, for each Valens share held, 0.3334 common shares of SNDL.
The SNDL shares to be issued to Valens shareholders represents an implied value of $1.26 per Valens share, based on the August 19, 2022 close of the SNDL shares on the Nasdaq Capital Market exchange, representing a premium of 21%, based on the 60-day volume-weighted average price of the Valens shares on the Toronto Stock Exchange for the period ending August 19, 2022, being the last trading day prior to the announcement of the arrangement, or a 48% premium based on the 10-day VWAP of the Valens shares on the TSX for the period ending June 27, 2022, being the last trading day prior to entering into a non-binding expression of interest for the arrangement. On completion of the arrangement, former Valens shareholders are expected to hold approximately 9.5% of the outstanding SNDL shares.
