The Valens Company Inc. (VLNS)

[jefra1965]

Apparently we won't see much until mid July when the Q2'22 results are released..

6 more months. I guess is NOT much after a very LONG wait.

Things I liked about the PR:

“It’s a pivotal time for Valens after a very acquisitive 2021 that saw us accelerate our business plan from three years to one and create a leading cannabis consumer products company with an exciting portfolio of brands,” said Tyler Robson, Chief Executive Officer and Chairman of The Valens Company.

This shows creativeness, smarts and execution capacity while under adverse market conditions. Very impressive how the manage to do all that in such a short period of time.

$20M in cost savings per year (Total) is quite a big chunk of whatever costs rate we will have this year. Gross margins should and need to look a LOT better for the stock to become attractive.

We will have a better picture after the Investors day but so far we are burning cash in operations at a rate above $40M per year.

The annual "Cost of Sales" will be around $60M and the OPEX will also be above $60M.

“As we redirect our focus to realizing the full package of targeted benefits from these acquisitions, we are now capturing the first wave of synergies through operational and organizational changes that we believe will not only improve our efficiencies but also drive the business towards becoming EBITDA positive in fiscal Q4 2022, which will be discussed in greater detail on our upcoming investor day."

I can't see this (EBITDA positive by Q4) yet but I hope I will. They should at least get close to that objective but right now it looks more like a FY2023 thing if possible.

"I’m proud to say that we have identified $10 million in annual cost efficiencies and expect to identify an additional $10 million in the coming quarters through additional planned initiatives. Investors can expect to start to see some of the benefits of the first wave of efficiencies in fiscal Q2 2022, with the majority of the impact being realized in the second half of the fiscal year.”

Overall, I like what I am reading so far. I need more numbers to have a clear pictures which will come with the next couple of financial results releases.