The Valens Company scales up and begins to show what it was 'made to do'
- The Valens Company announces strategic distribution agreement with APOTEKA, provides Australia update
- The Valens Company receives ‘positive’ buy rating from Stifel following two acquisitions
- The Valens Company take a large chunk of market share after acquisition of Verse and Citizen Stash
Quick facts: The Valens Company
Price: 2.57 CAD
Market Cap: $445.43 m
About the company
The Valens Company is a leading manufacturer of cannabis derivative products with a mission to bring the benefits of cannabis to the world. It provides proprietary cannabis processing services across five core technologies, in addition to best-in-class product development, formulation and manufacturing of cannabis consumer packaged goods. The company's high-quality products are exclusively formulated for the medical, therapeutic, health and wellness, and recreational consumer segments, and are offered across numerous product formats, including oils, vapes, concentrates, edibles and topicals, as well as pre-rolls, with a focus on next-generation product development and innovation. Its breakthrough patented emulsification technology, SōRSE by Valens, converts cannabis oil into water-soluble emulsions for seamless integration into a variety of product formats, allowing for near-perfect dosing, stability, and taste. In partnership with brand houses, consumer packaged goods companies and licensed cannabis producers around the globe, the company continues to grow its diverse product portfolio in alignment with evolving cannabis consumer preferences in key markets. Through its wholly-owned subsidiary Valens Labs Ltd., the company is setting the standard in cannabis testing and research and development with Canada's only ISO17025 accredited analytical services lab, named The Centre of Excellence in Plant-Based Science by partner and scientific world leader Thermo Fisher Scientific.
How it is doing
The Valens Company (TSX:VLNS, OTCQX:VLNCF) Inc. announced it has signed a regional distribution agreement with APOTEKA SRL, a pharmaceutical holding company based in Costa Rica with operations throughout Central America and the Caribbean.
Under the agreement, APOTEKA will bring Valens' nūance brand, into three core Central American markets including Costa Rica, the Dominican Republic and Panama. Valens said it also plans to introduce its Green Roads brand.
Valens said it has developed two CBD tinctures for APOTEKA that combine known wellness ingredients with CBD. The products will be manufactured by Green Roads and are made with coconut MCT oil. They come in coconut and peppermint flavor, with added terpenes, and will be available in two concentrations: 900 and 1,500 milligrams of CBD. Both tinctures have been carefully developed to match the tastes of local markets.
"This partnership with APOTEKA, part of GFI Costa Rica, a multiregional conglomerate with a 45-year track record, is consistent with our distribution first, asset-light, growth model in international markets,” CEO and chair Tyler Robson said in a statement.
The Valens Company (TSX:VLNS, OTCQX:VLNCF) Inc. has announced a white label partnership with Fire & Flower Holdings Corp. (TSX-V:FAF), a leading, technology-powered, cannabis retailer with over 90 corporate-owned stores in Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, and Yukon Territory.
Under the terms of the agreement, Valens will manufacture Fire & Flower's Revity CBD oil for distribution in Ontario, Manitoba, and Saskatchewan with the potential to expand into additional provincial and territorial markets where permitted and agreed.
The Valens Company (TSX:VLNS, OTCQX:VLNCF) Inc. has announced an exclusive partnership with Epsilon Healthcare Limited, a diversified global healthcare and pharmaceuticals company, for access to Epsilon's Good Manufacturing Practices (GMP) facility in Australia for manufacturing products.
In a statement, Valens said the partnership furthers its international expansion to GMP's markets in Latin America, Europe, UK, and the Asia-Pacific regions.
What the brokers say
Stifel GMP has issued a "positive" buy rating and target price of $5.75 on The Valens Company (TSX:VLNS, OTCQX:VLNCF) a day after the cannabis manufacturer announced the completion of its acquisition of Verse Cannabis.
The deal for the Canadian cannabis retailer will see Valens take ownership of all of the Verse intellectual property. Just a few weeks earlier Valens also reported that it was purchasing Citizen Stash Cannabis Corp, a Canadian premium craft cannabis company, in an all-stock transaction valued at about C$54.3 million. Both deals were cited in the analyst coverage from Stifel.
“With these two transactions, VLNS captures the Verse royalty payment, reduces execution risk and provides for greater control over brand positioning at both extreme price segments in the industry, potentially balancing margin profiles,” Stifel analysts said in their note.
What management says
The Valens Company (TSX:VLNS, OTCQX:VLNCF) President Jeff Fallows joined Steve Darling from Proactive to share news about two major acquisitions the company has made that now puts them in a new tier in the cannabis sector. Fallows talks about the rationale behind the acquisition of Verse Cannabis and Citizen Stash.
Fallows also talked about the number of products this gives the company and how their U.S. strategy remains a big part of their future.
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