Lenders will provide The Valens Company up to C$40 million of secured debt financing.
Valens GroWorks Corp. (TSX: VLNS), a global leader in the end-to-end development and manufacturing of innovative, cannabinoid-based products, today announced it has entered into a syndicated credit facility with Canadian Imperial Bank of Commerce as Co-Lead Arranger and Administrative Agent, and ATB Financial as Co-Lead Arranger. Under the terms of the credit facility, the Lenders will provide The Valens Company up to C$40 million of secured debt financing.
Although we are already well-capitalized, the Credit Facility increases our financial flexibility and brings down our overall weighted average cost of capital.Tyler Robson, CEO of The Valens Company
The Credit Facility consists of a C$20 million secured term loan and a C$20 million secured revolving loan, with an accordion feature that could allow The Valens Company to increase the aggregate commitments by up to an additional C$10 million. The Credit Facility has a three-year term and is secured by a first ranking charge over substantially all the Company's assets.
Proceeds from the Credit Facility will further strengthen the Company's balance sheet, allowing for the continued expansion of its operations and execution of its corporate strategy, including gaining access to new domestic and global opportunities to increase shareholder value.
"With our enhanced balance sheet, we are well-positioned to continue to expand our innovative product portfolio, build out our custom manufacturing platform, be opportunistic in a consolidating market and maximize capital allocation to generate the highest return on invested capital for our shareholders," said Tyler Robson, CEO of The Valens Company.
Additional details on the credit facility can be found in the Company's documents, which will be filed under the Company's profile on SEDAR at www.sedar.com.
Disclaimer: Past performance is not an indicator of future performance.
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