The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) (the “Company” “The Valens Company” or “Valens”), a leading manufacturer of cannabis products, announces that it has entered into a secured non-revolving term loan (the “Loan Agreement”) with 2361380 Ontario Limited, a private institutional lender, for an aggregate principal amount up to CAD$40 million (the “Loan”). The Loan will accrue interest at a rate of 10% per annum, payable quarterly, and matures on December 15, 2023 with an initial interest payment date on December 31, 2021. Proceeds from the Loan will further strengthen the Company’s balance sheet, allowing it to execute on its corporate strategy and fund working capital needs as the business continues its aggressive growth trajectory, as well as immediately retire the remaining $7.5 million outstanding under its existing debt facility.
Tyler Robson, Chief Executive Officer and Chairman of The Valens Company, stated: “With this strategic secured financing, Valens is now well positioned to accelerate its aggressive growth strategy, further fund its Canadian operations, and capitalize on new growth opportunities as the Company works toward expanding its presence in the United States. This CAD$40 million Term Loan reflects the unique value proposition that Valens has created in the market, as well as the continued confidence from our management, board, and shareholders in the continued execution of our business plan.”
Jeff Fallows, President of The Valens Company said: “This is a very attractive cost of capital and a non-dilutive financing solution that provides more financial flexibility, fewer covenants and restrictions and better enables us to aggressively penetrate our target markets and create shareholder value. This transaction, not only funds our current business plan but also strengthens our balance sheet. As a result, we do not anticipate the need to raise additional equity capital in the near term.”
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