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Valens Company Inc (TSE: VLNS) and Citizen Stash Cannabis Corp (OTCMKTS: EXPFF) have announced their entry into a new deal. It is an arrangement that will enable Valens to reach its goal to purchase the issued and outstanding common shares from Citizen Stash.
Details about the deal
The company understands all the terms and conditions, which include working with a court-approved plan of arrangement. In addition, the company says the arrangement must be linked to the Canada Business Corporations Act and discloses the transaction’s value, which stands at about $54.3 million on an enterprise value basis.
The Citizen Stash shareholders know the great role the terms of the Arrangement Agreement play in the wider scheme of matters, including dictating what they end up with in the form of Valens common share.
Valens considers the Citizen Stash Acquisition to be a step towards the right direction, outlining that it will be rather accretive for it in the future. It looks forward to great times ahead where it improves its portfolio. It hopes to add to it an innovative, premium flower brand. It acknowledges that it exists in a rather competitive business climate and is thus doing everything to keep improving its position in the fast-changing world.
The successful completion of the Citizen Stash transaction tells quite a lot about Valens’s determination to succeed. It is an achievement that takes the company’s acquisitions a notch higher. They will add up to a total of three.
Valens wants to progress, which includes developing an elaborate global manufacturing platform that will enable it to clinch a significant market share. In addition, it plans to undertake a series of innovative product launches that serve product consumers with great experiences.
The Chief Executive Officer and Chair of the Board of The Valens Company, Tyler Robson, opines, “We are excited to join forces with Citizen Stash’s experienced team and broaden our offerings in the flower and pre-roll verticals with a best-in-class brand. The premium price tier of the flower and pre-roll segments represents the best expansion opportunity for Valens in the flower category, as premium brands are the hardest to build, while also capturing the highest margins.”