Valens GroWorks closes $27.3 million financing deal; plans to boost extraction capacity at its Kelowna facility

Valens GroWorks Corp (CSE:VGW) announced that it has closed its previously announced C$27.3 million deal with AltaCorp Capital Inc and Mackie Research Capital Corp, as well as Beacon Securities Limited to buy 12.8 million units of the company at a price of C$1.95 per unit.

AltaCorp Capital Inc is the co-lead underwriter and sole bookrunner, Mackie Research Capital Corp is co-lead underwriter, and Beacon Securities Limited is also included.

Valens said it will use the funds to increase extraction capacity at the company’s Kelowna facility, strategically increase its domestic geographic presence, and for general corporate purposes.

READ: Valens Groworks signs exclusive deal with US beverage company Tarukino Holdings

Valens, a provider of cannabis products and services utilizing proprietary extraction processes, plans to use the net proceeds from the offering to increase extraction capacity at the company’s Kelowna facility, strategically increase its domestic geographic presence, and for general corporate purposes.

Shares of Valens in Canada were flat at C$1.60 on Wednesday, with shares in New York up 0.7% at US$1.26.

Valens is an integrated Canadian cannabis producer, with three wholly-owned subsidiaries located in and around Kelowna, British Columbia.

Story by ProactiveInvestors