The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) has completed the acquisition of premium cannabis producer Citizen Stash Cannabis Corp. (TSXV: CSC) (OTCQB: EXPFF) (FRANKFURT: MB31), in an all-stock deal valued at $54.3 million.
On Monday, the Kelowna-based company said Citizen Stash shareholders now own 0.1620 of a Valens common share for each Citizen Stash common share held.
The agreement was approved at a special meeting of Citizen Stash security holders on Nov. 1, and by the Supreme Court of British Columbia on Nov. 4.
During the deal, merchant banking firm Hillcrest Merchant Partners Inc. received 1,519,306 Citizen Stash common shares to be converted into Valens stock. Hillcrest served as an advisor to Citizen Stash.
“As we enter the premium flower category, Valens now boasts a manufacturing and brands portfolio that focuses on two high growth categories of premium flower and 2.0 products,” Valens CEO Tyler Robson said in a statement.
“This is just the first step into the premium cannabis product category and consumers can stay tuned to see how we further leverage Citizen Stash’s asset light genetics portfolio to launch new innovative products in the future.”
Citizen Stash CEO Jarrett Malnarich thanked shareholders for their support over the years.
“Going forward as a combined company, Citizen Stash and Valens are well-positioned to be the leading cannabis company in Canada and beyond,” he said.
Valens produces in-house cannabis brands in Canada, and has a number of manufacturing contracts with other Canadian pot firms.
It also manufactures and distributes a wide range of CBD products in the U.S. through its subsidiary Green Roads, and distributes medicinal cannabis products to international markets through its subsidiary Valens Australia.
Citizen Stash is a premium weed brand that owns cannabis manufacturer Experion Biotechnologies Inc., which has a production facility in Mission, B.C. and sources its flower from other producers growing with the same genetics.
According to Hifyre data from March to May in Ontario, Alberta and British Columbia, Citizen Stash products ranked among the highest by market share in the flower category.