The Valens Company Inc. (VLNS)

[FUNMAN]

Valens - January In Review

IMO Valens rebooted the original failed extractor thesis and is rounding the base-path on a lead/game changing homerun. MediPharm is counting on international deals. Valens is adapting and grinding it out in Canada. They are making measurable recovery progress while awaiting EU licenses. Tilray/Aphria are hitting home runs in Europe announcing UK, Spain and German deals in the last week, and that's on top of Aphria's quarterly $90M in German revenues. MediPharm is lagging. they are not cutting the mustard. Neptune all but abandoned the extraction business. Valens is where it's at. Just my opinion. - FUNMAN

The Valens Company (TSX: VLNS) (OTCQX:VLNCF) is pleased to provide the following summary of operations to investors:

Corporate and Operational Highlights

Acquisition of Leading Canadian Edibles Manufacturer, LYF Food Technologies Inc.

The Valens Company announced that it entered into a definitive agreement

https://thevalenscompany.com/press-releases/the-valens-company-expands-cannabis-2-0-3-0-footprint-with-the-acquisition-of-leading-canadian-edibles-manufacturer-lyf-food-technologies-inc/

... to acquire all of the issued and outstanding shares of LYF Food Technologies Inc. With the LYF Acquisition, the Company not only strengthens its already wide-reaching production capabilities for the 2.0 and 3.0 markets, but also unlocks significant growth potential with the addition of a cutting-edge platform designed to capitalize on one of the fastest growing product segments in the cannabis industry.

Read the LYF Acquisition fact sheet here

https://thevalenscompany.com/wp-content/uploads/2021/01/VLNS-LYF-Factsheet-.pdf

Watch Tyler Robson, CEO, Co-Founder and Chair of the Board of The Valens Company, discuss the acquisition of LYF Food Technologies with Proactive here

https://www.youtube.com/watch?v=xFwrM1To5AA&feature=emb_logo

“LYF has set the standard of what high quality edibles should be and has developed a diverse and flexible manufacturing platform to play a dominant role in the Canadian edibles market. LYF stood out for its product innovation and marketing teams, as well as its broad range of edible products which will introduce new formats to Canadian consumers that are typically only available in more mature markets. We look forward to further developing our product offering to reach more consumers with high-quality and unique cannabis edibles as this product segment continues to gain in popularity.”

Tyler Robson, Chief Executive Officer, Co-Founder and Chair of the Board of The Valens Company

Acquisition Highlights

* Combined industry experience, existing and deep supply chain relationships, and unique IP formulations create one of the leading cannabis consumer packaged goods platforms in Canada

Upfront purchase of LYF for CDN$24.9 million plus approximately CDN$17.5 million in consideration subject to achieving certain EBITDA milestones, which if met implies a ~4.2x multiple on fiscal 2022E EBITDA

* Accretive acquisition accelerates Valens' entry into one of the fastest-growing segments of the Cannabis 2.0 and 3.0 markets

* Valens now poised to substantially expand its edible product portfolio and market share with collective capabilities to produce innovative gummies, chocolates, baked goods and more

"Our team could not be more thrilled to join forces with The Valens Company and collectively fuel our shared passion for producing exceptional cannabis products with consumers top of mind. As a fellow Kelowna-based company, Valens’ vision for global growth resonated with the team and ultimately led us to recognize the significant value in combining what we have each uniquely created to bring a new level of manufacturing excellence to Canada and beyond."

-Paolo Pero and Matthew Amado, Founders of LYF

Watch - https://mcusercontent.com/a89f57a9c7aa459835b04c6be/images/835e7681-49d2-4834-a410-2a28e8a51a7a.gif

Closing of Bought Deal Financing

The Company announced the closing of its bought deal public offering of units for total gross proceeds of $CDN39,696,200. The Company plans to use $32 million of the net proceeds of the Offering to pursue strategic M&A and business expansion opportunities in Canada and international markets, with the balance of the net proceeds for working capital requirements and general corporate purposes.

https://thevalenscompany.com/press-releases/the-valens-company-closes-previously-announced-bought-deal-financing/

Additional Corporate and Operational Highlights

* The Valens Company provided an update on its strategic initiatives to drive further growth in 2021, including the realignment of its inventory to become one of the lowest-cost cannabis platforms, in addition to a preview of fourth quarter 2020 revenue and first quarter 2021 guidance.

* The Company joined the largest voice of the CPG industry in the country - Food, Health and Consumer Products (FHCP) of Canada.

https://thevalenscompany.com/press-releases/the-valens-company-joins-the-largest-voice-of-the-cpg-industry-in-the-country-food-health-consumer-products-fhcp-of-canada/

* Valens and Verse added THC and CBD drops to the Verse Originals product line. The drops will join the Verse Originals lineup of best-in-class formulations offered at a great value.

https://thevalenscompany.com/press-releases/the-valens-company-and-verse-cannabis-add-thc-and-cbd-drops-to-verse-originals-product-line/

Conferences and Events

* On January 7, Everett Knight, EVP, Corporate Development & Capital Markets, presented live at the KCSA Virtual Cannabis Conference. The archived webcast can be viewed here.

* From January 12-14, Management attended the ATB Capital Markets' 9th Annual Institutional Investor Conference and participated in one-on-one investor meetings. Tyler Robson, CEO, joined David Kideckel, ATB Managing Director and Senior Research Analyst, for a fireside chat titled "Cannabis 2.0... 3.0... and Beyond."

* Q4 and year-end earnings will take place in late February 2021, with the date and time to be announced soon.

Continue reading at this link:
https://mailchi.mp/6729dcf5e93b/monthly-investor-newsletter-5629742?e=7adef9981d