A Kelowna based cannabis company has struck a major deal to move into the United States' CBD market.
On Tuesday, The Valens Company announced its acquisition of Florida-based company Green Roads as part of its initial expansion south of the border.
Green Roads is the largest privately-owned CBD company in the US, specializing in selling cannabidiol online and through 7,000 retail locations.
The deal will see Valens acquire Green Roads for $40 million in cash and stock, plus $20 million (USD) if earnings-based targets are met.
A Canadian marijuana producer to buy Florida-based Green Roads as part of its initial expansion into the U.S. https://t.co/EO8IDnX9Pp
— Bloomberg (@business) April 27, 2021
“We evaluated what would strategically make the most sense as our first piece of the puzzle in our US market strategy,” Valens Chief Executive Officer Tyler Robson said in a statement.
"We expect to continue to unlock complimentary, revenue-generating opportunities while we forge our presence and build our reputation in the world’s largest cannabinoid market.”
While cannabis technically remains illegal in America, more and more states continue to legalize and decriminalize the product.
In the past month alone, both New York and New Mexico legalized recreational marijuana use.
Following the news on Tuesday, Valens Co (VLNS) stock price jumped more than 7%.
