The Valens Company (TSX: VLNS) has finally announced its US market debut. The company this morning announced that it will be acquire Green Roads in a cash and share transaction valued at up to US$60 million.
The transaction will see the company acquire the south Florida-based CBD firm for US$40 million in upfront consideration. An additional US$20 million in contingent consideration is applicable under the terms outlined, based on upon certain EBITDA targets being achieved. Should all milestones be met, the purchase price reportedly amounts to 4.5x fiscal 2022 EBITDA.
The company being acquired is reportedly the largest private CBD company in the US currently, with products within the health and wellness space including oils, topicals, personal care products, ingestibles, and pet products. The firms products utilize hemp-derived CBD for its products, while also providing B2B manufacturing to clients.
The transaction is expected to see consideration consist of US$25.4 million in common shares at a price of $2.50 per share, along with cash consideration of US$14.6 million. Milestone payments may be paid in either cash or shares,
The transaction is currently slated to close in June 2021.
The Valens Company last traded at $3.28 on the TSX.
Information for this briefing was found via Sedar and The Valens Company. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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