What’s Up with The Valens Company Inc (OTCMKTS:VLNCF)?

Valens Company Inc (OTCMKTS:VLNCF) stock is taking a hit on Wednesday and moved to the session low. After moving higher earlier this year, the stock has witnessed selling pressure over the past few weeks and lost almost 25% since April.

The Valens Company Announces CDN$40 Million Bought Deal Offering of Units

  • announce that it has entered into an agreement with Stifel Nicolaus Canada Inc. (“Stifel GMP” or the “Lead Underwriter”) on behalf of a syndicate of underwriters (together with the Lead Underwriter, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis 12,122,000 units (the “Units”) of the Company at a price of $3.30 per Unit (the “Issue Price”), for aggregate gross proceeds of $40,002,600 (the “Offering”).
  • Each Unit will be comprised of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”).
  • Each Warrant will be exercisable to acquire one Common Share (a “Warrant Share”) for a period of 36 months following the closing of the Offering (the “Closing”) at an exercise price of $4.15 per Warrant Share, subject to adjustment and acceleration in certain events.
  • In the event that the volume weighted average trading price of the Common Shares for ten (10) consecutive trading days exceeds $8.25, the Company may, within 10 business days of the occurrence of such event, deliver a notice (including a press release) to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice.

Market Action

As of 11:15, VLNCF stock fell 16% to $2.53. So far more than 47K shares have traded hands, well above its average volume of 306K shares. The stock opened at $2.755 and moved within a narrow range of $ 2.5130 – 2.7700.

 Moving Averages

+/- EMA(20)2.82 (-10.28%)
+/- SMA(50)2.46 (+2.85%)
+/- SMA(200)1.72 (+47.09%)

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