Common shares will be offered through a short form prospectus

Valens GroWorks Corp ( ) announced on Monday a C$25mln deal with AltaCorp Capital Inc to buy 12.82mln units of the company at a price of C$1.95 per unit.

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.

The common shares will be offered by way of a short form prospectus to be filed in each of the provinces of Canada, other than Quebec, and by way of a private placement in the United States. The offering is expected to close on or about October 10, 2018, a week before the legalization of cannabis recreational use in Canada.

Shares of Valens in Canada had closed on Monday 5.36% lower at C$2.12, while the stock in New York settled 6.36% down at US41.61.

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