Valens Co. to Enter U.S. CBD Market Through $40M Green Roads Acquisition

In #finance, The Valens Company agrees to purchase #Floridian #CBD manufacturer #Green Roads for 40 #million #dollars, marking their entry into the #US #market. Under terms of the transaction, the #British #Columbia-based #cannabis operator will pay 25.4 million dollars in common #shares and 14.6 million in cash for both Green Roads and their majority-owned manufacturing subsidiary. The deal also includes an additional maximum earnout of 20 million dollars based upon the completion of certain #EBITDA milestones in #2022. Green Roads is the largest privately-owned CBD company in the U.S., whose portfolio includes #hemp-derived #oils, #topicals, and pet products. Their #distribution #network of more than 7,000 retail locations nationwide will enable Valens to immediately enter the estimated 4.8 #billion #dollar #American CBD market, and sets them up to #capitalize on potential #future federal #marijuana legalization. According to #CEO and co-founder Tyler Robson, Valens analyzed more than a hundred CBD companies before choosing to buy Green Roads as the first step in their U.S. expansion strategy. This comes with the announcement that the company recently submitted an application to be listed on the #Nasdaq. They further plan to introduce Green Roads’ successful product formulations to #Canada, which would represent the manufacturer’s 8th country of distribution. The acquisition is expected to close in #June pending approval from the #Toronto #Stock Exchange.

William Bradley

William Bradley

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