Valens GroWorks Announces Closing of $27.3 Million Bought Deal Financing

- October 10th, 2018

Valens GroWorks Corp. (CSE:VGW) (the “Company” or “Valens”), a multi-licensed, vertically integrated provider of cannabis products and services utilizing proprietary extraction processes, is pleased to announce that it has closed its previously announced bought-deal prospectus offering (the “Offering”).

Valens GroWorks Corp. (CSE:VGW) (the “Company” or “Valens”), a multi-licensed, vertically integrated provider of cannabis products and services utilizing proprietary extraction processes, is pleased to announce that it has closed its previously announced bought-deal prospectus offering (the “Offering”). The syndicate for the Offering was led by AltaCorp Capital Inc. as co-lead underwriter and sole bookrunner, along with Mackie Research Capital Corp. as co-lead underwriter, and including Beacon Securities Limited (collectively, the “Underwriters”), pursuant to which the Company issued an aggregate of 12,820,513 units of the Company (the “Units”) at a price of $1.95 per Unit, 1,130,977 common shares of the Company (“Common Shares”) and 961,539 Common Share purchase warrants, as a partial exercise of the Underwriters’ over-allotment option (the “Offering Price”) for aggregate gross proceeds to the Company of $27,303,801.

The Company plans to use the net proceeds from the Offering to increase extraction capacity at the Company’s Kelowna facility, strategically increase the Company’s domestic geographic presence, and for general corporate purposes.

The securities issued pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Valens GroWorks

Valens GroWorks Corp. is a vertically integrated provider of Canadian cannabis products developed from our proprietary extraction techniques, with three wholly-owned subsidiaries located in and around Kelowna, BC. Subsidiary Valens Agritech has initiated cannabis production, processing and sales under a Health Canada Dealer’s Licence, which includes a supply agreement with Canopy Growth Corporation under their extensive CraftGrow distribution network. Subsidiary Supra THC Services is a Health Canada licensed ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant Based Medicine Analytics. Subsidiary Valens Farms is in the process of becoming a purpose-built facility in compliance with European Union (EU) Good Manufacturing Practices (GMP) standards, ensuring the product from this facility can be exported anywhere in the world where Cannabis is nationally legal for medical or adult usage purposes. For more information, please visit http://valensgroworks.comhttp://www.valensagritech.comand http://www.suprathc.ca.

For further information, please contact:

Scott Young
Telephone: +1.705.888.2756

Notice regarding Forward Looking Statements

This news release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as “anticipates”, “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed”, “positioned” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the reasonable opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

The CSE or other regulatory authority has not reviewed, approved or disapproved the contents of this press release. We seek Safe Harbour.

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES

Click here to connect with Valens GroWorks Corp. (CSE:VGW) for an Investor Presentation.

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