Price Target Changed • Jan 13
Price target decreased to CA$1.23 Down from CA$2.25, the current price target is an average from 2 analysts. New target price is 19% above last closing price of CA$1.03. The company is forecast to post a net loss per share of CA$2.96 next year compared to a net loss per share of CA$0.88 last year. Announcement • Dec 14
Valens Gets Extension to Regain Compliance with Nasdaq The Valens Company Inc. has received an extension of 180 calendar days from the Nasdaq Stock Market LLC to regain compliance with the Nasdaq's minimum USD 1.00 bid price requirement set in Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market, following the expiration of the initial 180 calendar days period to regain compliance on Dec. 12, 2022. The Nasdaq determination is based on the company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market with the exception of the bid price requirement, and the company's written notice of its intention to cure the deficiency during the second compliance period by effecting a share consolidation, if necessary. As a result of the extension, the company now has until June 12, 2023, to regain compliance with the bid price requirement. If at any time before June 12, 2023, the bid price of the company's common shares closes at or above $1.00 (U.S.) per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification to the company that it has achieved compliance with the bid price requirement. If the company chooses to implement a share consolidation to regain compliance, it must complete the consolidation no later than 10 business days prior to the expiration of the additional 180-calendar-day period in order to timely regain compliance. If the company does not regain compliance with the bid price requirement by June 12, 2023, Nasdaq will provide written notification to the company that its shares will be subject to delisting. At such time, the company may appeal the delisting determination to a Nasdaq hearings panel. The company would remain listed pending the panel's decision. There can be no assurance that, if the company does appeal a subsequent delisting determination, such appeal would be successful. This current notification from Nasdaq has no immediate effect on the listing or trading of the company's shares, which will continue to trade on the Nasdaq Capital Market under the symbol VLNS. The company is also listed on the Toronto Stock Exchange and the notification letter does not affect the company's compliance status with such listing. As a reminder, the company continues to expect to close the plan of arrangement with SNDL Inc. in January, 2023, well in advance of the June 12, 2023, deadline to regain compliance with the bid price requirement. Pursuant to the plan of arrangement SNDL will acquire all of the issued and outstanding common shares of Valens on the basis of 0.3334 of a SNDL common share for each outstanding Valens common share, on and subject to the terms of the arrangement agreement dated Aug. 22, 2022. Announcement • Oct 14
The Valens Company Inc. Withdraws All Previously Given Financial Guidance The Valens Company Inc. withdraws all previously given financial guidance. In light of the proposed acquisition of the Company by SNDL Inc., Valens is withdrawing all previously given financial guidance as such financial guidance is no longer appropriate under the circumstances. Reported Earnings • Oct 13
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: CA$0.34 loss per share (further deteriorated from CA$0.23 loss in 3Q 2021). Revenue: CA$20.3m (down 3.3% from 3Q 2021). Net loss: CA$27.5m (loss widened 115% from 3Q 2021). Revenue missed analyst estimates by 25%. Earnings per share (EPS) also missed analyst estimates by 84%. Revenue is forecast to grow 52% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Pharmaceuticals industry in Canada. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 42 percentage points per year, which is a significant difference in performance. Announcement • Oct 07
The Valens Company Inc. to Report Q3, 2022 Results on Oct 13, 2022 The Valens Company Inc. announced that they will report Q3, 2022 results at 4:00 PM, US Eastern Standard Time on Oct 13, 2022 Announcement • Aug 23
SNDL Inc. (NasdaqCM:SNDL) entered into an arrangement agreement to acquire remaining 89.9% stake in The Valens Company Inc. (TSX:VLNS) for CAD 92.1 million. SNDL Inc. (NasdaqCM:SNDL) entered into an arrangement agreement to acquire remaining 89.9% stake in The Valens Company Inc. (TSX:VLNS) for CAD 92.1 million on August 22, 2022. Under the terms of the Agreement, Valens' shareholders will receive, for each Valens Share, 0.3334 of a common share of SNDL. The combined company will operate as SNDL Inc., and Valens shareholders will own approximately 9.5% of the pro forma entity. The Agreement provides for, among other things, customary support and non-solicitation covenants from Valens, including customary "fiduciary out" provisions that allow Valens to accept a superior proposal in certain circumstances and a five-business day "right to match period" in favour of SNDL. The Agreement also provides for the payment of a termination fee of CAD 8 million payable to SNDL by Valens in the event the Transaction is terminated in certain specified circumstances.
The Transaction will be carried out by way of a court-approved plan of arrangement under the Canada Business Corporations Act. The implementation of the Transaction will be subject to the approval of at least two thirds of the Valens Shares entitled to be voted by Valens shareholders and the approval of a simple majority of the Valens Shares entitled to be voted by Valens shareholders, other than Valens shareholders required to be excluded under applicable laws, at a special meeting expected to be convened by Valens by the end of November 2022 (the "Meeting"), and the receipt of applicable orders from the Ontario Superior Court of Justice and applicable regulatory approvals, including under the Competition Act (Canada) and the applicable provincial liquor and cannabis regulators. Valens' board of directors has unanimously approved the Transaction after receiving the unanimous recommendation of a special committee of Valens directors (the "Special Committee"). Valens' board of directors has unanimously resolved to recommend that the shareholders of Valens vote in favour of the Transaction. SNDL’s Board of Directors also unanimously approved the Transaction. All directors and executive officers of Valens have entered into voting support agreements with SNDL pursuant to which, among other things, the parties have agreed to vote their Valens Shares in favour of the Transaction. The transaction is expected to close during January 2023. Together with incremental revenues from greater distribution of Valens products, it is estimated that the Transaction will deliver upwards of CAD 15 million of additional EBITDA on an annual run-rate basis through synergies and other strategic initiatives.
Cormark Securities Inc. has provided a fairness opinion to the Special Committee of Valens that, subject to the assumptions, limitations and qualifications set out in such fairness opinion, the consideration to be received by Valens shareholders pursuant to the Transaction is fair from a financial point of view to Valens' shareholders. ATB Capital Markets Inc. is acting as financial advisor to SNDL. McCarthy Tétrault LLP is acting as legal counsel to SNDL. Cormark Securities Inc. is acting as financial advisor and Stikeman Elliott LLP is acting as legal counsel to Valens. Major Estimate Revision • Jul 20
Consensus EPS estimates fall by 259% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CA$115.1m to CA$104.3m. Losses expected to increase from CA$0.79 per share to CA$2.83. Pharmaceuticals industry in Canada expected to see average net income growth of 13% next year. Consensus price target down from CA$4.50 to CA$2.36. Share price rose 11% to CA$0.99 over the past week. Reported Earnings • Jul 14
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: CA$2.13 loss per share (down from CA$0.17 loss in 2Q 2021). Revenue: CA$24.0m (up 28% from 2Q 2021). Net loss: CA$160.8m (loss widened CA$152.1m from 2Q 2021). Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) also missed analyst estimates by 769%. Over the next year, revenue is forecast to grow 74%, compared to a 102% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has fallen by 58% per year, which means it is performing significantly worse than earnings. Announcement • Jul 14
The Valens Company Inc. Provides Earnings Guidance for the Year 2023 The Valens Company Inc. provided earnings guidance for the year 2023. For the year, the company expects minimum revenue of CAD 225 million. Price Target Changed • Jul 12
Price target decreased to CA$4.07 Down from CA$4.64, the current price target is an average from 7 analysts. New target price is 329% above last closing price of CA$0.95. Stock is down 88% over the past year. The company is forecast to post a net loss per share of CA$0.79 next year compared to a net loss per share of CA$0.88 last year. Announcement • Jul 07
The Valens Company Inc. to Report Q2, 2022 Results on Jul 13, 2022 The Valens Company Inc. announced that they will report Q2, 2022 results After-Market on Jul 13, 2022 Announcement • Jun 17
The Valens Company Receives Additional Product Listings with SQDC & Introduces Bon Jak an Exclusive Cannabis Brand in Quebec The Valens Company Inc. announced the launch of a Quebec-exclusive brand, Bon Jak. Valens continues to build its presence in Quebec with the addition of several exciting new SKUs under the Bon Jak brand, which is focused on delivering unique user experiences in the province of Quebec: Dried Flower: Bon Jak BC God Bud (28g) Bon Jak Indica Ground (15g) Bon Jak Sativa Ground (15g) Cannabis-Infused Beverages: Bon Jak Lime Seltzer (355ml) Bon Jak Grapefruit Seltzer (355ml) Bon Jak Mango Seltzer (355ml) The products are expected to be listed to the Société québécoise du cannabis ("SQDC") effective September 12, 2022, and expected to be distributed through the SQDC retail and online channels. Announcement • Jun 16
The Valens Company Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency The Valens Company Inc. announced that on June 13, 2022, it received a written notice (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company is not in compliance with the minimum bid price requirement ("Minimum Bid Requirement") of US$1.00 per share under the Nasdaq Listing Rules (the "Listing Rules"). Based on the closing bid price of the Company's common shares for the last 30 consecutive business days, the Company has failed to meet the Minimum Bid Requirement set forth in Listing Rule 5550(a)(2) during that period. The Notice is only a notification of deficiency, it is not a notice of imminent delisting, and it has no current immediate effect on the listing or trading of the Company's common shares on the Nasdaq Capital Market. Announcement • May 17
The Valens Company Inc. Appoints Andrew Cockwell as its New Chair of the Board The Valens Company Inc. announced that it has separated the roles of Chair and Chief Executive Officer (CEO) and appointed Andrew Cockwell as its new Chair of the Board, effective immediately. Tyler Robson has stepped down as Chair in full support of this decision and will remain on the Board and as the CEO of the Company. Mr. Cockwell is the Managing Partner of Ursataur Capital Management, a private equity firm he founded in 2009 that strategically invests in Canadian mid-market companies across various industries. He holds a track record of fostering value creation for both private and public companies, advising on issues such as strategic realignment, operational improvement, capital allocation, and governance. Previously, Mr. Cockwell was a Founding Partner of ReichmannHauer Capital Partners in 2006, a Toronto-based private equity firm targeting both domestic and international investments. He also served in the Private Equity and Corporate Finance practices at global management consulting firm McKinsey & Company, which he joined in 2003 and where he advised businesses, private equity firms, and hedge funds in North America and Europe. Earlier in his career, he practiced M&A and securities law as an attorney at Sullivan & Cromwell in New York and London. Mr. Cockwell holds a breadth of experience providing financial and legal advisory services in a variety of complex business contexts across a wide range of industries, including industrial coatings, ground support, financial services, and food and retail. Recent Insider Transactions • Apr 27
Independent Director recently bought CA$133k worth of stock On the 21st of April, Andrew Cockwell bought around 90k shares on-market at roughly CA$1.47 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$10m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Apr 22
Independent Director recently bought CA$96k worth of stock On the 19th of April, Guy Beaudin bought around 65k shares on-market at roughly CA$1.47 per share. In the last 3 months, there was an even bigger purchase from another insider worth CA$123k. Insiders have collectively bought CA$10m more in shares than they have sold in the last 12 months. Major Estimate Revision • Apr 20
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CA$119.2m to CA$117.5m. Losses expected to increase from CA$0.66 per share to CA$0.77. Pharmaceuticals industry in Canada expected to see average net income growth of 20% next year. Consensus price target down from CA$6.32 to CA$5.21. Share price fell 2.5% to CA$1.53 over the past week. Price Target Changed • Apr 17
Price target decreased to CA$5.50 Down from CA$6.32, the current price target is an average from 6 analysts. New target price is 257% above last closing price of CA$1.54. Stock is down 82% over the past year. The company is forecast to post a net loss per share of CA$0.59 next year compared to a net loss per share of CA$0.88 last year. Price Target Changed • Apr 14
Price target decreased to CA$6.04 Down from CA$6.50, the current price target is an average from 7 analysts. New target price is 292% above last closing price of CA$1.54. Stock is down 82% over the past year. The company is forecast to post a net loss per share of CA$0.64 next year compared to a net loss per share of CA$0.88 last year. Reported Earnings • Apr 14
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: CA$0.38 loss per share (down from CA$0.14 loss in 1Q 2021). Revenue: CA$23.2m (up 16% from 1Q 2021). Net loss: CA$25.7m (loss widened 319% from 1Q 2021). Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) missed analyst estimates by 41%. Over the next year, revenue is forecast to grow 72%, compared to a 156% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has fallen by 49% per year, which means it is performing significantly worse than earnings. Announcement • Apr 14
The Valens Company Inc. Provides Revenue Guidance for the Year 2023 The Valens Company Inc. provided revenue guidance for the year 2023. For the year, the company expects minimum revenue of CAD 225 million. Recent Insider Transactions • Apr 08
Independent Director recently bought CA$123k worth of stock On the 5th of April, Andrew Cockwell bought around 47k shares on-market at roughly CA$2.65 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$10.0m more in shares than they have sold in the last 12 months. Announcement • Apr 08
The Valens Company Inc. to Report Q1, 2022 Results on Apr 13, 2022 The Valens Company Inc. announced that they will report Q1, 2022 results After-Market on Apr 13, 2022 Announcement • Apr 06
The Valens Company Inc. has completed a Composite Units Offering in the amount of CAD 28.124999 million. The Valens Company Inc. has completed a Composite Units Offering in the amount of CAD 28.124999 million.
Security Name: Units
Security Type: Equity/Derivative Unit
Securities Offered: 8,254,716
Price\Range: CAD 2.65
Discount Per Security: CAD 0.159
Security Name: Units
Security Type: Equity/Derivative Unit
Securities Offered: 2,358,491
Price\Range: CAD 2.65
Discount Per Security: CAD 0.053 Announcement • Mar 29
The Valens Company Inc., Annual General Meeting, May 31, 2022 The Valens Company Inc., Annual General Meeting, May 31, 2022. Major Estimate Revision • Mar 07
Consensus revenue estimates fall by 14% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CA$140.7m to CA$121.5m. Forecast losses increased from -CA$0.46 to -CA$0.58 per share. Pharmaceuticals industry in Canada expected to see average net income growth of 37% next year. Consensus price target down from CA$7.64 to CA$6.50. Share price fell 15% to CA$2.23 over the past week. Breakeven Date Change • Mar 03
No longer forecast to breakeven The 7 analysts covering Valens no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of CA$2.62m in 2023. New consensus forecast suggests the company will make a loss of CA$8.90m in 2024. Announcement • Mar 02
The Valens Company Inc. Provides Revenue Guidance for the Year 2023 The Valens Company Inc. provided revenue guidance for the year 2023. For the year, the company expects revenue guidance of minimum CAD 225 million. Announcement • Feb 18
The Valens Company Inc. to Report Q4, 2021 Results on Feb 28, 2022 The Valens Company Inc. announced that they will report Q4, 2021 results After-Market on Feb 28, 2022 Major Estimate Revision • Feb 10
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast fell from CA$84.8m to CA$80.6m. 2021 losses expected to reduce from -CA$0.68 to -CA$0.31 per share. Pharmaceuticals industry in Canada expected to see average net income growth of 60% next year. Consensus price target down from CA$11.44 to CA$8.22. Share price rose 36% to CA$3.11 over the past week. Price Target Changed • Feb 09
Price target decreased to CA$8.22 Down from CA$11.44, the current price target is an average from 8 analysts. New target price is 222% above last closing price of CA$2.55. Stock is down 60% over the past year. The company is forecast to post a net loss per share of CA$0.68 next year compared to a net loss per share of CA$0.49 last year. Announcement • Jan 26
The Valens Company Inc. Launches Two New Brands in Value and Premium Markets The Valens Company Inc. announced the launch of Versus, an evolution of its Verse value brand. The launch involves the introduction of two net new Versus product lines this week, plus a rebranding of the full Verse portfolio this spring, for a total of approximately 20 SKUs across product categories. This repositioning and expansion mark the beginning of a strategic, multi-step plan to grow the Valens brand portfolio into one of the top performers in the adult recreational market. The Versus launch follows Valens' acquisition of Verse Cannabis in September 2021, which, with its acquisition of Citizen Stash, propelled Valens into a top-tier market share position in Canada, while remaining a partner-of-choice for third-party custom manufacturing partners. Cannabis and urban music, fashion and art has always been closely intertwined. Contraband was born out of that existing connection, which has fueled so many great works of cultural creativity. By leveraging Citizen Stash's catalogue of premium genetics Valens will add a new line of ultra-premium products, expanding its reach to a new, more discerning consumer in this fast growing, high value segment. CNDYLND flower in two sizes (3.5g and 14g) will be the first launches, beginning in Ontario, followed later this year by pre-rolls, concentrates, and vapes. Announcement • Dec 10
The Valens Company's Ordinary Shares Deleted from Other OTC The Valens Company Inc.'s Ordinary Shares will be deleted from other OTC effective from December 9, 2021 due to Market Center Change Listed on NASDAQ. Recent Insider Transactions • Oct 22
CEO & Chairman recently bought CA$114k worth of stock On the 18th of October, Andrew Robson bought around 59k shares on-market at roughly CA$1.94 per share. This was the largest purchase by an insider in the last 3 months. Andrew has been a buyer over the last 12 months, purchasing a net total of CA$286k worth in shares. Price Target Changed • Oct 15
Price target decreased to CA$3.81 Down from CA$4.34, the current price target is an average from 8 analysts. New target price is 101% above last closing price of CA$1.90. Stock is up 6.7% over the past year. Reported Earnings • Oct 15
Third quarter 2021 earnings released: CA$0.076 loss per share (vs CA$0.024 loss in 3Q 2020) The company reported a soft third quarter result with increased losses and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: CA$21.0m (up 16% from 3Q 2020). Net loss: CA$12.8m (loss widened 318% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Sep 02
The Valens Company Inc. (TSX:VLNS) acquired Verse Cannabis Corp. The Valens Company Inc. (TSX:VLNS) acquired Verse Cannabis Corp. on September 1, 2021. The transaction is expected to be accretive to The Valens Company Inc. in 2021 and 2022 before synergies.
The Valens Company Inc. (TSX:VLNS) completed the acquisition Verse Cannabis Corp. on September 1, 2021. Announcement • Sep 01
The Valens Company Inc. (TSX:VLNS) entered into an arrangement agreement to acquire Citizen Stash Cannabis Corp. (TSXV:CSC) for CAD 51.2 million. The Valens Company Inc. (TSX:VLNS) entered into an arrangement agreement to acquire Citizen Stash Cannabis Corp. (TSXV:CSC) for CAD 51.2 million on August 31, 2021. Under the terms of the arrangement agreement, Citizen Stash shareholders will receive 0.1620 of a Valens common share for each Citizen Stash common share held. Under the Arrangement, the outstanding Citizen Stash warrants, and the in-the-money Citizen Stash options, will be transferred to Citizen Stash for their in-the-money amount, payable in Valens shares, net of applicable withholdings. The arrangement agreement provides for a break fee of 4.0% payable by Citizen Stash to Valens if the arrangement is terminated in certain specified circumstances.
The transaction is subject to the receipt of certain court and stock exchange approvals and the satisfaction of customary conditions precedent in transactions of this nature. The transaction also requires the approval of the shareholders of Citizen Stash. The arrangement does not require Valens shareholder approval. The transaction has been unanimously approved by the Valens’ board of directors. Citizen Stash’s directors permitted to vote also unanimously approved the transaction. The transaction is expected to be accretive to Valens in 2021 and 2022 before synergies. The acquisition represents an attractive revenue multiple of approximately 4.3x first half fiscal 2021 annualized revenue. Stikeman Elliott LLP is acting as legal counsel to The Valens Company. Fasken Martineau DuMoulin LLP is acting as legal counsel to Citizen Stash and Hillcrest Merchant Partners Inc. and Evans & Evans, Inc. are acting as financial advisors to Citizen Stash. Citizen Stash’s directors received the fairness opinion of Evans & Evans Inc. Announcement • Aug 13
The Valens Company Inc. and Verse Cannabis Launch New Vape Cartridges and Expand Offering to Include Cannabis-Infused Beverages The Valens Company Inc. announced the launch of three new products in partnership with Verse Cannabis ("Verse"), including two new vape cartridges and the brand's first cannabis-infused beverage. With its wide range of products under both the Verse Originals and Verse Concentrates lines, Verse Cannabis now offers products across all categories. The new products from the Verse Originals line include The first cannabis-infused beverage introduced by Verse, Rapid Tropical Rush offers a refreshing twist to classic water with tangy citrus flavours of lemon and lime and a hint of sweet tropical ripe mangoes. Each 250ml stubby bottle is infused with 10 mg of THC and 10 mg of CBD and is equipped with a resealable lid to allow for controlled consumption. Powered by SRSE® by Valens technology, this beverage is free of cannabis taste and smell and offers a quick onset. Rapid Tropical Rush is currently available in Alberta and British Columbia with Ontario to follow in the coming weeks, and a variety of additional beverages are expected to launch from Verse in the coming quarters. The newest flavour addition to the top-selling line of vape cartridges from Verse, this high-potency vape cartridge offers a unique terpene-rich blend of fruity and distinctively sweet mango flavours inspired by the popular Mango Haze strain. Formulated using Valens' proprietary, ultra-refined extraction processes, the Mango Nectar vape cartridge is comprised of ultra-pure distillate. The cartridge also comes in several other flavours, including Tropic Lemon, Sunset Peach, Mandarin Mint, and Summer Berry, all available in participating Canadian markets, with Mango Nectar currently available in Alberta and arriving in Ontario in the coming weeks. Verse has also launched a new addition to the Live Terp series under the Verse Concentrates line, the Live Terp Guava x BC Blueberry 510 Vape Cartridge (1g), now available in Alberta and soon to be available in British Columbia and Ontario. This Indica dominant cartridge packs in strong punches of citrus and sour blueberry that develops into a gassy pine finish. Using CO2 extraction, the complete terpene-rich profile of fresh-frozen whole flower is removed, and extracted live terpenes are then added to a highly refined distillate for a smooth, rich pull. The Live Terp Guava x BC Blueberry Vape Cartridge follows the introduction of the Killer Kush Live Terp Vape Cartridge released earlier this summer, available in participating Canadian markets. Recent Insider Transactions • Aug 11
Insider recently sold CA$111k worth of stock On the 5th of August, Paolo Pero sold around 43k shares on-market at roughly CA$2.57 per share. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought CA$10.0m more than they sold in the last 12 months. Reported Earnings • Jul 16
Second quarter 2021 earnings released: CA$0.055 loss per share (vs CA$0.028 loss in 2Q 2020) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: CA$18.8m (up 6.5% from 2Q 2020). Net loss: CA$8.66m (loss widened 145% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 22
The Valens Company Inc. (TSX:VLNS) completed the acquisition of Green Roads of Florida, LLC. The Valens Company Inc. (TSX:VLNS) entered into a definitive agreement to acquire Green Roads of Florida, LLC for $60 million on April 27, 2021. As reported, Green Roads will be acquired for closing consideration of $40 million, including the issuance of approximately $25.4 million in common shares of The Valens Company and up to $14.6 million in cash. In addition, up to $20 million in contingent consideration is payable in either common shares or cash at Valens' option upon the business achieving certain EBITDA milestones of achieving LTM EBITDA of $13.3 million by December 31, 2022. The common shares issued in connection with the acquisition will be subject to lock-up restrictions. The acquisition also includes Green Roads' subsidiaries. The upfront purchase price of $40 million represents 1.8x fiscal 2020 revenue. Green Roads reported revenue of $22.3 million for the fiscal year 2020. Dale Baker, President & Chief Operating Officer of Green Road will work with The Valens Company team. The acquisition remains subject to approval from the Toronto Stock Exchange and customary conditions and approvals, including Valens’ lender approval. The transaction has been approved by Valens' Board of Directors and is expected to close in June 2021. The acquisition is expected to be accretive to The Valens Company in 2021.
Colin Kirby, Shir Wisenberg, Nicola Lemay, Jesse Alderman, Michael McQueeny, Christopher Hart, Creighton Page, Erica Rice and Ryan Rourke Reed of Foley Hoag LLP and Stikeman Elliott LLP are acting as legal counsel to The Valens Company and Stifel GMP is acting as its exclusive financial advisor. Greenberg Traurig LLP is acting as legal counsel to Green Roads and Cowen is acting as its exclusive financial advisor. Brandon Roop of Keefe, Bruyette, & Woods, Inc. acted as financial advisor to The Valens Company Inc.
The Valens Company Inc. (TSX:VLNS) completed the acquisition of Green Roads of Florida, LLC on June 21, 2021. Announcement • Jun 04
The Valens Company Enters Flower, Pre-Roll Categories and Introduces New Edibles and Concentrates Products in Partnership With Verse Cannabis The Valens Company Inc. announced that it has launched several new products in partnership with Verse Cannabis ("Verse") in the flower, pre-roll, concentrates, and edibles categories. With the continued launch of next-generation, high quality cannabis products across various categories, Valens continues to partner with Verse to further its mission to provide all Canadians with best-in-class formulations in innovative formats at value price points. The new products launched under the Verse Originals line include BC God Bud Flower, Dreamweaver Pre-Rolls and Amp Pre-Roll, in addition to the Double Chocolate Brownie – one of the first confectionery products of its kind to hit the Canadian recreational market. Additionally, the newly launched Killer Kush Live Terp Vape Cartridge and Hash will be available as part of the Verse Concentrates offering. The launch of these new products marks Valens' entry into the flower and pre-roll categories, an offering expansion at the request of its customer base which is represented by many leading cannabis companies in the country. Additionally, the Company has expanded its concentrates product offering in the market to include hash and live terp vape cartridges. Verse Originals dried cannabis products are formulated using premium BC grown bud, available at an attractive price point without sacrificing quality. Recent Insider Transactions Derivative • Jun 03
CEO & Chairman exercised options to buy CA$63k worth of stock. On the 27th of May, Andrew Robson exercised options to buy 20k shares at a strike price of around CA$3.20, costing a total of CA$64k. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. Since December 2020, Andrew's direct individual holding has increased from 5.07m shares to 5.24m. Company insiders have collectively bought CA$253k more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Jun 02
The Valens Company Inc. has completed a Composite Units Offering in the amount of CAD 40.0026 million. The Valens Company Inc. has completed a Composite Units Offering in the amount of CAD 40.0026 million.
Security Name: Units
Security Type: Equity/Derivative Unit
Securities Offered: 9,091,697
Price\Range: CAD 3.3
Discount Per Security: CAD 0.198
Security Name: Units
Security Type: Equity/Derivative Unit
Securities Offered: 3,030,303
Price\Range: CAD 3.3
Discount Per Security: CAD 0.066
Transaction Features: Regulation S; Rule 144A Executive Departure • Jun 01
Independent Director has left the company On the 25th of May, Nitin Kaushal's tenure as Independent Director ended after 2.7 years in the role. As of March 2021, Nitin personally held 60.00k shares (CA$163k worth at the time). A total of 4 executives have left over the last 12 months. Executive Departure • May 19
Chief Financial Officer has left the company On the 17th of May, Christopher Buysen's tenure as Chief Financial Officer ended after 2.9 years in the role. As of December 2020, Christopher personally held 333.17k shares (CA$550k worth at the time). A total of 3 executives have left over the last 12 months. Recent Insider Transactions Derivative • May 16
Vice President exercised options and sold CA$105k worth of stock On the 11th of May, Daniel Howard exercised 88k options at a strike price of around CA$1.73 and sold these shares for an average price of CA$2.93 per share. This trade did not impact their existing holding. Since December 2020, Daniel's direct individual holding has increased from 3.43k shares to 4.58k. Company insiders have collectively sold CA$1.9m more than they bought, via options and on-market transactions in the last 12 months. Announcement • May 05
The Valens Company Inc. announced that it has received CAD 1.972159 million in funding from Sundial Growers Inc. The Valens Company Inc. (TSX:VLNS) announced a private placement of 538,400 common shares at a price of CAD 3.663 per share for gross proceeds of CAD 1.972159 million on May 3, 2021. The transaction included participation from returning investor Sundial Growers Inc. (NasdaqCM:SNDL). Before the transaction, Sundial Growers Inc. (NasdaqCM:SNDL) had 15,501,800 common shares for an equity stake of 9.7% of the issued and outstanding common shares on a non-diluted basis. Post the transaction, Sundial Growers Inc. (NasdaqCM:SNDL) had 16,040,200 common shares for an equity stake of 10.1% of the issued and outstanding common shares on a non-diluted basis. Major Estimate Revision • May 01
Consensus EPS estimates increase to -CA$0.078 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from CA$110.6m to CA$119.5m. EPS estimate increased from -CA$0.095 to -CA$0.078. Pharmaceuticals industry in Canada expected to see average net income growth of 71% next year. Consensus price target up from CA$3.54 to CA$4.06. Share price rose 13% to CA$3.54 over the past week. Price Target Changed • Apr 30
Price target increased to CA$3.94 Up from CA$3.64, the current price target is an average from 9 analysts. New target price is 14% above last closing price of CA$3.47. Stock is up 52% over the past year. Announcement • Apr 28
The Valens Company Inc. (TSX:VLNS) entered into a definitive agreement to acquire Green Roads of Florida, LLC for $60 million. The Valens Company Inc. (TSX:VLNS) entered into a definitive agreement to acquire Green Roads of Florida, LLC for $60 million on April 27, 2021. As reported, Green Roads will be acquired for closing consideration of $40 million, including the issuance of approximately $25.4 million in common shares of The Valens Company and up to $14.6 million in cash. In addition, up to $20 million in contingent consideration is payable in either common shares or cash at Valens' option upon the business achieving certain EBITDA milestones of achieving LTM EBITDA of $13.3 million by December 31, 2022. The common shares issued in connection with the acquisition will be subject to lock-up restrictions. The acquisition also includes Green Roads' subsidiaries. The upfront purchase price of $40 million represents 1.8x fiscal 2020 revenue. Green Roads reported revenue of $22.3 million for the fiscal year 2020. Dale Baker, President & Chief Operating Officer of Green Road will work with The Valens Company team. The acquisition remains subject to approval from the Toronto Stock Exchange and customary conditions and approvals, including Valens’ lender approval. The transaction has been approved by Valens' Board of Directors and is expected to close in June 2021. The acquisition is expected to be accretive to The Valens Company in 2021.
Stikeman Elliott LLP and Foley Hoag LLP are acting as legal counsel to The Valens Company and Stifel GMP is acting as its exclusive financial advisor. Greenberg Traurig LLP is acting as legal counsel to Green Roads and Cowen is acting as its exclusive financial advisor. Reported Earnings • Apr 16
First quarter 2021 earnings released: CA$0.045 loss per share (vs CA$0.02 profit in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and control over costs. First quarter 2021 results: Revenue: CA$20.0m (down 37% from 1Q 2020). Net loss: CA$6.15m (down 342% from profit in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 19% per year. Announcement • Mar 12
The Valens Company Enters First Pre-Roll Manufacturing Agreement with Experion Biotechnologies The Valens Company Inc. announced that it has entered into a custom manufacturing agreement with Experion Biotechnologies Inc. Under the agreement, Valens will provide end-to-end pre-roll manufacturing and product distribution services to Experion – the Company's first custom manufacturing agreement of this nature following the receipt of its Health Canada licence amendment to sell dried cannabis products. In partnership, Valens and Experion will expand the pre-roll offering for Experion's popular Citizen Stash brand, which is focused on providing consumers the highest quality handcrafted, small batch cannabis. The terms of the agreement support a minimum two-year partnership with monthly minimum order quantities. Valens and Experion are in continued discussions to expand the existing agreement to include additional product development and custom manufacturing services for a range of next generation products beyond gummies, which are currently being manufactured at the LYF facility, and pre-rolls. There is, however, no assurance that any such deal would be reached. Additionally, on March 5, 2021, Valens announced the closing of its acquisition of LYF. In connection with the LYF acquisition and per the requirements of the Toronto Stock Exchange, Valens carries out its operations in compliance with the applicable laws of each jurisdiction in which the Company operates with respect to the cultivation, distribution, sale, or possession of cannabis (including laws applicable to anti-money laundering) to the extent applicable to the activities being undertaken by the Company in such jurisdiction. Announcement • Mar 07
The Valens Company Inc. completed the acquisition of LYF Food Technologies Inc. The Valens Company Inc. entered into a definitive agreement to acquire LYF Food Technologies Inc. for CAD 47.8 million on January 25, 2021. The consideration includes cash and shares of The Valens Company. The purchase price payable on closing is CAD 24.9 million, including the assumption of CAD 2.9 million in mortgage related debt and the issuance of 9.84 million in common shares of The Valens Company, of which up to CAD 5 million is payable in cash, plus up to an additional CAD 17.5 million in consideration payable upon the business achieving certain earn-out EBITDA milestones. CAD 2.2 million in value of Common Shares (being 0.98 million in Common Shares) will be placed into escrow for indemnity purposes. In addition, CAD 2.9 million in value of Common Shares (being 1,282,051 Common Shares) of further consideration will be placed into escrow and is subject to release upon the achievement of certain Milestones relating to financial performance with other Milestones to be payable upon achievement in cash and/or Common Shares, at The Valens Company's option. If all the milestones are met, the transaction represents an approximate ~4.2x multiple on the last milestone achieved. LYF Food Technologies's team will join The Valens Company. The acquisition remains subject to approval from the Toronto Stock Exchange and customary conditions and approvals from senior lender. The Common Shares issued in connection with the LYF Acquisition will be subject to lock-up restrictions of four months and eight months for certain vendors and up to two years for the founders and majority share owners. This transaction has been approved by the The Valens Company's Board of Directors. The transaction is expected to close on or about February 18, 2021. As of February 24, 2021, the transaction is expected to close on or about March 1, 2021. The transaction is expected to be accretive to The Valens Company's EBITDA and diluted EPS in 2021. McCarthy Tétrault LLP acted as legal advisor to The Valens Company Inc. Aird & Berlis LLP acted as legal advisor to LYF Food Technologies Inc.
The Valens Company Inc. completed the acquisition of LYF Food Technologies Inc. on March 5, 2021. Announcement • Mar 05
The Valens Company Enters into Extraction and Custom Manufacturing Agreement with Rubicon Organics The Valens Company Inc. announced that it has entered into an extraction and custom manufacturing agreement with Rubicon Organics. Rubicon Organics boasts a robust portfolio of recreational brands that meet the diversified needs of consumers, including super-premium Simply Bare Organic, flower-based 1964 Supply Co., in addition to concentrate-focused Lab Theory. Under the terms of the agreement, Valens will have the opportunity to leverage its full complement of proprietary extraction capabilities, including organic certified CO2, ethanol, and other extraction technologies, to deliver customized consumer experiences in a variety of 2.0 products under the Rubicon Organics portfolio. Additionally, the custom manufacturing agreement provides a platform for collaboration, new product development and innovation to bring next generation formats to the market, allowing Valens to further expand its industry-leading portfolio of product manufacturing capabilities. Reported Earnings • Feb 27
Full year 2020 earnings released: CA$0.16 loss per share (vs CA$0.059 loss in FY 2019) The company reported a mediocre full year result with increased losses and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: CA$83.8m (up 44% from FY 2019). Net loss: CA$20.7m (loss widened 216% from FY 2019). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 27
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 30%. Over the next year, revenue is forecast to grow 37%, compared to a 227% growth forecast for the Pharmaceuticals industry in Canada. Major Estimate Revision • Feb 25
Analysts update estimates The company's losses in 2020 are expected to worsen with analysts lowering their consensus EPS forecasts from -CA$0.10 to -CA$0.12. Revenue estimate was approximately flat at CA$82.9m. The Pharmaceuticals industry in Canada is expected to see a 31% decline in net income next year. The consensus price target was lowered from CA$3.57 to CA$3.54. Share price is down by 1.1% to CA$1.85 over the past week. Announcement • Feb 19
The Valens Company Inc. to Report Q4, 2020 Results on Feb 24, 2021 The Valens Company Inc. announced that they will report Q4, 2020 results After-Market on Feb 24, 2021 Announcement • Feb 13
The Valens Company Expands Product Distribution Capabilities with Amended Health Canada Licence to Sell Dried Cannabis Products The Valens Company Inc. has received an amendment to its existing Health Canada standard processing licence permitting the sale of dried cannabis products to authorized provincial and territorial retailers in Canada. This licence amendment allows The Valens Company to distribute next generation dried cannabis derivative products across the country, increasing the Company's total addressable market. Pre-rolls and dried cannabis derivative products will be the latest additions to the Company's growing portfolio of in-demand offerings, which includes a variety of cannabis extract products such as vapes, concentrates, edibles, beverages, and topicals. With this new licence, The Valens Company can now offer a complete range of products to its customers in the Canadian recreational cannabis market. Announcement • Feb 12
The Valens Company Inc. Announces the Launch of Nance's CBD 100 The Valens Company Inc. announced the launch of nance's CBD 100, a high-potency CBD-dominant oil, available in the Medical Cannabis by ShoppersTM marketplace in the coming weeks. CBD 100 will join nance's lineup of premium cannabis health and wellness products developed with trusted ingredients and approachable formulations that enable both simplified and customized consumer dosing. Using Valens' proprietary extraction technology to isolate high purity cannabidiol (CBD), the carefully curated and naturally sourced nance CBD 100 formulation delivers a light and natural taste by blending MCT oil and flavourless CBD crystalline while ensuring THC is below detectable levels. The product is packaged in a 30ml bottle with a drip- controlled dispensing mechanism designed to allow consumers to personalize their dosage and incorporate the product into their wellness routine. Two drops of the oil are equal to approximately 5 mg of CBD, and potency of the product may vary batch by batch. The Valens Company previously launched several other nance products for Medical Cannabis by Shoppers patients, including oils and vapes in various blends and potencies, and expects to unveil additional products in the coming quarters such as topical formats like bath bombs, body oil, moisturizer, and relief rub, as well as water drops and additional premium oils. Announcement • Feb 06
The Valens Company Inc. Provides Operational and Corporate Update Regarding Manufacturing Facility in Kelowna and Its Facility in the Greater Toronto Area The Valens Company Inc. provided an operational and corporate update regarding the progress of its second white label and custom manufacturing facility in Kelowna and its facility in the Greater Toronto Area. The Valens Company has commenced its first shipments of cannabis derivative products from its newly-operational K2 Facility, including a wide range of products such as crumble, beverages, THC drops, vapes, and tinctures. Currently, the Company has commissioned the manufacturing of vapes, tinctures, beverages, and bath bombs in the K2 Facility. Valens intends to further operationalize the facility over the next few quarters to increase the production, packaging, and shipping of its existing portfolio, as well as a number of soon-to-be launched product formats such as hash and pre-rolls. With the K2 Facility in operation, Valens now has the ability to fully leverage its low-cost cannabis platform to drive
product sales, accelerate entry into new innovative product verticals and increase output volumes. The 42,000 square foot K2 Facility is built to EU GMP standards and designed to efficiently execute on each step of the cannabis
consumer packaged goods supply chain, positioning the Company as a leader in Cannabis 2.0 and 3.0 product manufacturing. Major Estimate Revision • Feb 02
Analysts lower EPS estimates to -CA$0.09 The 2020 consensus revenue estimate was lowered from CA$84.6m to CA$83.6m. The company's losses are expected to worsen with analysts lowering their EPS forecasts from -CA$0.075 to -CA$0.09 for the same period. The Pharmaceuticals industry in Canada is expected to see a 31% decline in net income next year. The consensus price target was lowered from CA$4.04 to CA$3.73. Share price is down by 15% to CA$1.76 over the past week. Announcement • Jan 31
The Valens Company Inc. has completed a Composite Units Offering in the amount of CAD 35.014 million. The Valens Company Inc. has completed a Composite Units Offering in the amount of CAD 35.014 million.
Security Name: Units
Security Type: Equity/Derivative Unit
Securities Offered: 17,080,000
Price\Range: CAD 2.05
Discount Per Security: CAD 0.123 Price Target Changed • Jan 27
Price target lowered to CA$3.89 Down from CA$4.22, the current price target is an average from 9 analysts. The new target price is 108% above the current share price of CA$1.87. As of last close, the stock is down 48% over the past year. Announcement • Jan 26
The Valens Company Inc. entered into a definitive agreement to acquire LYF Food Technologies Inc for CAD 47.8 million. The Valens Company Inc. entered into a definitive agreement to acquire LYF Food Technologies Inc. for CAD 47.8 million on January 25, 2021. The consideration includes cash and shares of The Valens Company. The purchase price payable on closing is CAD 24.9 million, including the assumption of CAD 2.9 million in mortgage related debt and the issuance of 9.84 million in common shares of The Valens Company, of which up to CAD 5 million is payable in cash, plus up to an additional CAD 17.5 million in consideration payable upon the business achieving certain earn-out EBITDA milestones. CAD 2.2 million in value of Common Shares (being 0.98 million in Common Shares) will be placed into escrow for indemnity purposes. In addition, CAD 2.9 million in value of Common Shares (being 1,282,051 Common Shares) of further consideration will be placed into escrow and is subject to release upon the achievement of certain Milestones relating to financial performance with other Milestones to be payable upon achievement in cash and/or Common Shares, at The Valens Company's option. If all the milestones are met, the transaction represents an approximate ~4.2x multiple on the last milestone achieved. LYF Food Technologies's team will join The Valens Company. The acquisition remains subject to approval from the Toronto Stock Exchange and customary conditions and approvals from senior lender. The Common Shares issued in connection with the LYF Acquisition will be subject to lock-up restrictions of four months and eight months for certain vendors and up to two years for the founders and majority share owners. This transaction has been approved by the The Valens Company's Board of Directors. The transaction is expected to close on or about February 18, 2021. The transaction is expected to be accretive to The Valens Company's EBITDA and diluted EPS in 2021. McCarthy Tétrault LLP acted as legal advisor to The Valens Company Inc. Aird & Berlis LLP acted as legal advisor to LYF Food Technologies Inc. Major Estimate Revision • Jan 22
Analysts lower EPS estimates to -CA$0.075 The 2020 consensus revenue estimate was lowered from CA$90.2m to CA$84.6m. The company's losses are expected to worsen with analysts lowering their EPS forecasts from -CA$0.046 to -CA$0.075 for the same period. The Pharmaceuticals industry in Canada is expected to see an average net income growth of 34% next year. The consensus price target was lowered from CA$4.22 to CA$4.04. Share price is down by 13% to CA$2.40 over the past week. Announcement • Jan 16
The Valens Company Inc. Becomes an Associate Corporate Member of Food, Health & Consumer Products of Canada The Valens Company Inc. announced that it has become an Associate Corporate Member of Food, Health & Consumer Products of Canada (FHCP), the largest voice of the Canadian food, beverage and consumer products industry representing small independently and privately-owned companies as well as large, global multinationals, all of whom manufacture and distribute safe and high-quality consumer packaged goods (CPG) in Canada. As the leading voice uniting companies, large and small, that provide access to the food, health, and consumer products that Canadians rely on every day, FHCP works to create a favorable business environment that allows its members to bring innovative products to market, promotes environmental stewardship, and standardizes product labelling so that Canadians have choices and ready access to safe and high-quality products. Joining FHCP is a natural progression for Valens in establishing a broader CPG footprint and bringing about efforts to normalize cannabinoid products, which now include various health and wellness formats such as beverages and bath and beauty products, beyond what current consumers expect. The relationship with FHCP will allow Valens the opportunity to create strategic category-building connections with over one hundred of Canada's top CPG companies while allowing the Company to educate FHCP members about the benefits of not only major but also minor, non-intoxicating cannabinoids. As a member, The Valens Company will have opportunities to work with CPG peers and facilitate discussion through seminars, workshops, and presentations. The Company will also rely on its extensive experience in cannabinoid research, product development, and large- scale manufacturing, and work with FHCP to develop consumer and trade insights for companies looking to learn more about the cannabis industry. Announcement • Jan 08
The Valens Company and Verse Cannabis Add THC and CBD Drops to Verse Originals Product Line The Valens Company Inc. announced the launch of THC and CBD water-soluble drops under a custom manufacturing agreement with Verse Cannabis ("Verse"). The drops will join the Verse Originals lineup of best-in-class formulations offered at a great value. Housed in compact 20ml bottles, the THC and the CBD flavourless drops come equipped with a precision dropper and dosing cap for drip-controlled dispensing. Consumers may blend the two separate products to create a customized THC/CBD ratio that offers a consistent and controlled user experience. Two drops of the premium, reinvented cannabis extracts equal approximately either 1mg THC or 1mg CBD. Verse THC and CBD drops provide consumers a versatile form of consumption, ideal to mix with food, water, and non-alcoholic beverages, or to ingest directly orally or sublingually. Formulated using SoRSE™ by Valens water-soluble emulsification solution, the drops are free of cannabis colour, flavour, and odour, and are the first extract product format to enter the market powered with this technology. Is New 90 Day High Low • Jan 08
New 90-day high: CA$2.09 The company is up 9.0% from its price of CA$1.91 on 09 October 2020. The Canadian market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 60% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$15.27 per share. Announcement • Nov 27
The Valens Company Inc. Announces Renee Merrifield Has Stepped Down from the Company's Board of Directors The Valens Company Inc. announced that Ms. Renee Merrifield has stepped down from the Company's Board of Directors (Board) following her election as Member of the Legislative Assembly (MLA) of the Kelowna-Mission district of British Columbia in the provincial general election held October 24, 2020. Ms. Merrifield served on The Valens Company's Board of Directors as an independent member and a member of the Board Nominating and Corporate Governance Committee since June 2020. Merrifield's resignation is effective November 26, 2020. Announcement • Nov 18
The Valens Company Adds Clear Emulsion to SORSE by Valens Offering The Valens Company Inc. announced the addition of SoRSE Clear, a stable, clear emulsion with a minimal sensory profile, to the SoRSE by Valens offering for CBD isolate product formats. SoRSE Technology is a water-soluble emulsion technology designed for product developers to provide consumers with a more consistent cannabinoid experience with user-controlled dosing, demonstrated shelf-stability, and safe ingredients. The Valens Company has been leveraging this emulsion technology to transform cannabis extracts into water-soluble forms and to infuse beverages, edibles and topicals without a cannabis aroma and after-taste. SoRSE Clear is currently available in a liquid format and contains safe, vegan, allergen-free ingredients. The new emulsion offering features multiple benefits including stability, safety, improved sensory experience, homogeneity, and seamless integration. SoRSE Clear also complies with all the main safety and testing protocols, including Good Manufacturing Practices (GMP) and The Global Safety Food Initiative (GFSI). Recent Insider Transactions • Nov 15
Independent Director recently bought CA$125k worth of stock On the 12th of November, Andrew Cockwell bought around 67k shares on-market at roughly CA$1.86 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold CA$1.7m more in shares than they bought in the last 12 months. Announcement • Oct 30
The Valens Company Inc. Announces the Launch of 510 Vape Cartridges Under A Custom Manufacturing Agreement with High12 Brands The Valens Company Inc. announced the launch of 510 vape cartridges under a custom manufacturing agreement with High12 Brands for its newly-introduced DAIZE brand. The DAIZE brand line of vape products will offer experienced consumers unique and potent formulations with premium cannabis oil made from a curated selection of sought-after cannabis strains. The 0.5g carts, DAIZE Lemon Limo, DAIZE Mango Mercy, and DAIZE Alpha Berry, are the first products to be released under the new brand. All cartridges contain full spectrum winterized CO2 pure cannabis extract to preserve the plant's flavour and aroma, with no fillers or additives. DAIZE Lemon Limo is sourced from premium sativa-dominant cannabis flower, rich in limonene and brings a fresh blast of citrus fruit with a hint of spice. DAIZE Mango Mercy is sourced from premium hybrid cannabis flower, rich in myrcene and tropical notes with light and earthy undertones. DAIZE Alpha Berry is sourced from premium indica-dominant flower, rich in alpha-pinene and reminiscent of ripe blackberries with piney notes. All DAIZE vape cartridges are compatible with 510 batteries and are made with a customized high-grade stainless-steel mouthpiece and quartz glass chamber. The three products will be available online and at select retailers in Alberta and British Columbia in mid-November, with Ontario to follow shortly after. The Valens Company and High12 will continue to work together to optimize the DAIZE brand portfolio and bring various innovative vape products to Canadian consumers. Recent Insider Transactions • Oct 30
CEO & Chairman recently bought CA$104k worth of stock On the 28th of October, Andrew Robson bought around 71k shares on-market at roughly CA$1.46 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Andrew has been a net seller over the last 12 months, reducing personal holdings by CA$1.4m. Is New 90 Day High Low • Oct 23
New 90-day low: CA$1.52 The company is down 23% from its price of CA$1.98 on 24 July 2020. The Canadian market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 15% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$12.85 per share. Price Target Changed • Oct 20
Price target lowered to CA$4.25 Down from CA$4.58, the current price target is an average from 10 analysts. The new target price is 146% above the current share price of CA$1.73. As of last close, the stock is down 46% over the past year. Analyst Estimate Surprise Post Earnings • Oct 17
Third-quarter earnings released: Earnings beat expectations, revenue disappoints Third-quarter revenue missed analyst estimates by 0.2% at CA$18.1m. Earnings per share (EPS) exceeded analyst estimates by 40% at -CA$0.02. Revenue is forecast to grow 32% over the next year, compared to a 159% growth forecast for the Pharmaceuticals industry in Canada. Announcement • Oct 07
The Valens Company Inc. to Report Q3, 2020 Results on Oct 14, 2020 The Valens Company Inc. announced that they will report Q3, 2020 results on Oct 14, 2020 Is New 90 Day High Low • Oct 06
New 90-day low: CA$1.55 The company is down 29% from its price of CA$2.19 on 08 July 2020. The Canadian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$39.21 per share. Announcement • Oct 03
The Valens Company and TREC Brands Launch Vape Cartridges Under WINK's Premium Product Portfolio The Valens Company Inc. announced the launch of vape cartridges under a custom manufacturing agreement with TREC Brands for its WINK brand premium product portfolio. The 510 thread cartridges, WINK Onyx and WINK Chalice, are the first set of vape products to be introduced to WINK's carefully curated collection of unique products. The cartridges contain high THC, custom formulations crafted using a broad-spectrum CO2 extraction process, offering consumers terpene-rich cannabis extract, free of carriers and additives. WINK Chalice is a Sativa-dominant blend with a smooth earthy and floral flavour profile with a hint of spice, while Indica-dominant WINK Onyx offers potent floral and citrus notes with an herbal undertone. All WINK cartridges are compatible with a 510 thread vape battery and are made with a ceramic or electroplated mouthpiece, stainless steel frame, and glass casing designed to deliver maximum performance. Both are currently available at retailers and online in Alberta, and are expected to be available in Ontario in the coming weeks. TREC Brands will donate 10% of profits from all sales of WINK products to community-based initiatives that put the people and planet first. Specifically, the WINK brand donates to organizations supporting social services and homelessness. In addition to WINK, The Valens Company will also manufacture vape products for two other existing TREC brands, Thumbs Up Brand and Blissed, with the potential to later produce other innovative products in partnership with the company. Announcement • Sep 30
The Valens Company Inc. Announces Launch of New Higher Potency Cannabis-Infused Beverage, Summit 10 The Valens Company Inc. (the ‘Company’ or ‘The Valens Company’) announced the launch of a new higher potency cannabis-infused beverage, Summit 10, under a white label agreement with A1 Cannabis Company (a subsidiary of Iconic Brewing) (‘A1 Cannabis’ or ‘A1’). Summit 10, a lemonade iced tea containing 10mg of THC, is the third addition to The Valens Company and A1's line of cannabis-infused beverages. Available in a 355ml bottle, Summit 10 differentiates from the previously released 2.5mg THC-infused Summit beverage, with a flavour profile of citrus and black tea and a higher potency level. Summit 10 was developed using SoRSE by Valens emulsion technology and is designed for consumers seeking a higher dosage product with faster observed onset times and reduced offset times, housed in a resealable bottle for convenient and controlled consumption. Earlier this year, The Valens Company introduced its first line of cannabis infused beverages in partnership with A1 Cannabis – Basecamp, a CBD-forward iced tea, and Summit, a THC-forward citrus-flavoured water. Both have quickly gained popularity in the Canadian cannabis-infused beverage market, receiving acclaim for their differentiated taste and customizable dosing from the industry and consumers alike. Summit 10 is expected to first launch in mid-October in Alberta online and at select retailers, with British Columbia and Ontario to follow shortly after. The Valens Company and A1 Cannabis also expect to release a zero sugar Summit 10 beverage this fall.