Citizen Stash Cannabis Corp (OTCMKTS: EXPFF) is a cannabis processor company. It has a subsidiary company named Experion Biotechnologies Inc, a licensed cannabis cultivator and processor. Citizen recently announced about The Valens Company’s $1.5 million investment in Citizen Stash. This paved the way for a secured convertible debenture to enter between Citizen Stash and Valens. Citizen Stash also happily announced their filed management information circular for the special virtual meetings of Citizen Stash’s common shareholders.
Benefits of the Arrangement agreement
Additionally, they also share information with the shareholders regarding the benefits and risks of the Arrangement. Few among them are listed below.
Ownership and a strong focus on cannabis production will make shareholders have a great interest in ownership in Valens. Valens makes Citizen Stash understand the real potential of their brands and products. The partnership of Citizen Stash’s innovative products and Valen’s existing products will build an excellent basement for Canada and United States’ future partnerships. Valens has full access to the capital market and lowers capital costs. This allows the Citizen’s shareholders to participate in the pipeline of organic growth initiatives. The shareholders will be provided a premium of 35% on a 15-day volume average price per Citizen Stash Common share. Citizen Stash shareholders can hold the common shares of Valens and participate in all upcoming value increases of the common shares of Valens after their completion of Arrangement.
The Debenture carries an interest of around 6.0%. The Debenture principal can be changed into Citizen Stash Common Shares. And the conversion rate is $0.39 per Citizen Stash common share. A license of one year was issued to Valens to obtain 1,923,076 Citizen Stash Common shares at the rate of $0.585 per Citizen Stash Common share.
The Supreme Court of British Columbia, on September 28, 2021, issued an interim order to Citizen Stash for permitting holding the Meeting and the mailing of the Circular. After this legal, financial advice, the board of Citizen Stash directors uniformly decided that the Arrangement Agreement was fair to the shareholders. And they also suggested voting for the Arrangement Resolution to the Shareholders and the option holders.