Cannabis products producer
The Valens Company Inc. (TSX:VLNS) (OTCQX:VLNCF) is poised to take over Green Roads in a cash-and-stock transaction.
The M&A Deal: The Kelowna, British Columbia-based company agreed to purchase all issued and outstanding shares of Green Roads — a U.S.-based, privately owned CBD company — and its manufacturing subsidiary for $40 million.
The price tag includes roughly $25.4 million in Valens common shares at an indicative price of $2.5088 per share and up to $14.6 million in cash.
Under the terms of the agreement, Valens opted to pay an additional $20 million upon achieving certain EBITDA milestones in 2022.
Stifel GMP is advising Valens throughout the sale process, while Stikeman Elliott LLP and Foley Hoag LLP act as legal counsel. Greenberg Traurig LLP agreed to act as legal counsel to Green Roads, and Cowen is acting as its exclusive financial advisor.