Replies to post #3513 on The Valens Company Inc. (VLNS)

[FUNMAN]

THE VALENS COMPANY PUBLISHES ARTICLE IN HEALTH EUROPA QUARTERLY – ISSUE 16

On February 5, 2021, In Cannabis Science

The Valens Company has published an article in Issue 16 of Health Europa Quarterly. The article focuses on The Future of CBD Wellness Products.

HIGHLIGHTS

The CBD Wellness space is growing rapidly, with a future looking promising for businesses hoping to tap into it. Beyond the demand for traditional CBD-forward cannabis products, The Valens Company is actively engaged in the development of wellness-focused solutions. This article explores CBD as a whole, its integration into wellness products, and upcoming areas with great product potential.

The Market for CBD & Wellness

The global market for CBD is forecasted to reach $23.6 billion in revenue by 2025. By 2028, CBD products could account for over 0.15% of the total health and wellness market. Through technological advancements and product innovation, the possibilities of integrating CBD into wellness are essentially limitless.

Why CBD?

CBD continues to stand out for its therapeutic potential. There are significant differences between CBD oil by source and concentration, highlighting the need for regulation in labelling and testing. Increased consumer education and company transparency will go far in securing CBD’s place in the wellness industry.

CBD Integration
Immiscibility is a hurdle that must be overcome for incorporating CBD into wellness products. SoRSE by Valens is an advanced emulsion technology that gives partners the ability to transform any CBD oil into a water-soluble emulsion. Shelf-stable for up to 12 months, and available in liquid, powder, or agglomerated powder formats, this innovation allows for the seamless integration of CBD into virtually any product.

Areas of Product Potential

Ingestibles – CBD gummies, brownies, chocolates, beverages, drink drops and gel-capsule supplements.

Topicals – lotions, creams, balms, and sprays.

Personal Care Products – bath bombs, body rubs, massage oils, and intimate products.

Inhalation and vaporisers – numerous hardware options, including universal cartridges and disposable units.

B2B Partnerships & Trust

Not all CBD products are created equal. A lack of requirement for validated testing has left space in the market for insufficiently tested products. Valens Labs is an analytical testing facility that is entirely dedicated to quality control. Through best-in-class extraction and analytical testing, partners can trust that their products will be compliant with regulations and free of contaminants or fillers.

With legislation moving towards regulations and guidance, the demand for CBD products in wellness will continue to expand. By providing a one-stop shop business model, wellness companies are able to take advantage of Valens’s extensive experience in cannabinoid-based science and technology. When it comes to formulation, product development, white labelling and custom manufacturing, Valens offers a full range of services that can meet the needs of the growing wellness industry.

Read the full article on “The Future of CBD Wellness Products” in Issue 16 of Health Europa Quarterly here.

https://edition.pagesuite-professional.co.uk/html5/reader/production/default.aspx?pnum=306&edid=339f2970-4097-4d05-93e0-55d83eee08d8&isshared=true

[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

[FUNMAN]

Valens is in the sweet spot --->>> Beverages Could Become One of the Biggest Segments in the Cannabis Industry

This article points out activity of other companies. But we know Valens just completed expansion of it's beverage production capabilities. It's very exciting. - FUNMAN

The global CBD-infused beverage market is expected to jump from about $89 million to more approx. $1.4 billion just over the next three years. By 2025, that number could soar to about $4.4 billion. All as industry heavyweights jump on the CBD-beverage bandwagon.

For example, Aphria Inc. (NASDAQ:APHA) Chairman and CEO, Irwin Simon once noted that beverages could become one of the biggest segments in the cannabis industry once marijuana is legalized in the United States, according to THC Net.

Plus, we’re already seeing major alcohol companies jumping in, such as Anheuser Busch Inbev (NYSE:BUD), Constellation Brands Inc. (NYSE:STZ), Molson Coors Beverage Co. (NYSE:TAP), as well as water companies such as The Alkaline Water Co. (NASDAQ:WTER)(CSE:WTER).

Or, look at BevCanna Enterprises Inc. (CSE:BEV)(OTCQB:BVNFF) for example.

The company just announced that, further to its news releases dated November 24, 2020 and December 12, 2020, it has entered into an amended and restated agreement (dated January 31, 2021 with Naturo Group Investments Inc.. The parties have also completed the exchange of disclosure schedules, one of the precedent conditions of the Definitive Agreement.

Upon completion of the transaction, Naturo will become a wholly-owned subsidiary of BevCanna and the Company will carry on the combined business of BevCanna and Naturo. There will be no change in management of BevCanna on closing. The Transaction is expected to close in the next 10 days.

The coming together of these two emerging industry leaders will create a diversified health and wellness beverage and natural products company, with proforma $55M+ in assets on the balance sheet, and a multi-channel sales and distribution network positioned for growth.

“BevCanna and Naturo each bring a number of unique strengths to the combination, that together form an even stronger company,” said Marcello Leone, Founder of Naturo and CEO of BevCanna. “BevCanna’s leadership in the cannabis-infused beverage sector and direct to consumer e-commerce business, together with Naturo’s innovative TRACE plant-based mineral beverages and supplements, significant manufacturing & natural resource assets and extensive distribution network, will form the foundation of a unique, market-leading health and wellness company well positioned for long-term growth.”

The new BevCanna will offer one of the most unique and diverse portfolios of beverage and wellness products within both the cannabis and the plant-based categories, and will expand BevCanna’s leadership position, becoming the only fully licensed, in-house and white-label beverage manufacturing company that distributes both conventional CPG and cannabis-based beverage and wellness products. The Transaction will provide access to global, multi-channel distribution networks of traditional and cannabis specific sales channels.

BevCanna will realize a number of key benefits from the acquisition, including:

- Creation of a “development to distribution” beverage manufacturing vertical for both traditional and cannabis-infused beverages and natural products.

- Direct ownership of a proprietary on-site natural alkaline spring water aquifer, valued at C$18M. As water resources become increasingly scarce, the proprietary resource will contribute to a strengthened balance sheet and to BevCanna’s unique positioning within the exploding plant-based and cannabis sectors.

- An established and growing mass market distribution network of over 3,000 retail points, via Naturo’s market-leading TRACE plant-based mineral beverages and supplements. TRACE is sold across the country through Canadian retailers, with select international agreements and partnerships under review. Along with their nationally distributed alkaline and sparkling waters, and plant-based mineral beverages and supplements, TRACE is expanding its product selection and is incorporating additional nutraceuticals, including cannabinoids, adaptogens, and nootropics, into its products to be sold in domestic and international markets.

- TRACE’S proprietary Health Canada-approved plant-based fulvic and humic formulations – a category which is expanding exponentially across North America and globally.

- Naturo’s 315-acres of outdoor cultivatable land and 40,000 sq. ft. high-capacity beverage facility valued at C$10.4M, optimized for both traditional and cannabis-infused beverage manufacture, and beverage manufacturing equipment valued at C$3.4M (as of year-end).

- As per Naturo’s latest independent estimate pricing report as of January 2021, Naturo’s enterprise value is between C$37M-C$38M.

The Transaction constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions as Messrs. Marcello Leone and Martino Ciambrelli are shareholders of Naturo and also directors and the Chief Executive Officer and President, respectively, of the Company. The Transaction is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) as the fair market value of the Transaction, insofar as it involves interested parties, does not exceed 25% of the Company’s market capitalization at the time the Transaction was agreed to. As the news release and material change report disclosing the Transaction are being filed less than 21 days before the expected closing date of the Transaction, there is a requirement under MI 61-101 to explain why the shorter period is reasonable or necessary in the circumstances. In order to fully realize on the significant market opportunity presented by the combination of the two complementary companies, the Company intends to complete the Transaction in the next 10 days.

The Company also announces that it has settled debt in the amount of $51,501 owed by the Company to certain creditors of the Company in exchange for 35,000 common shares at a deemed price of $0.90 per Debt Settlement Share and 23,810 Debt Settlement Shares at a deemed price of $0.84 per Debt Settlement Share.

The Company also announces it has granted an aggregate of 100,000 stock options to purchase up to 100,000 common shares of the Company to one consultant of the Company and one director of the Company. The Options granted vest immediately upon the Grant and are exercisable for a period of 1 year from the date of Grant at a price of $1.00 per common share.

The Debt Settlement Shares are not subject to a hold period. The securities acquired in the Grant are subject to a hold period of four months and one day from the date of the Grant.

None of the securities acquired in the Debt Settlement and the Grant will be registered under the United States Securities Act of 1933, as amended, and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for BevCanna Enterprises Inc. by a third party. We own ZERO shares of BevCanna Enterprises Inc. Please click here for full disclaimer.

Contact Information:
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[FUNMAN]

Valens poised to be a leader in Cannabis 3.0

By Anne-Marie Fischer On Feb 17, 2021

https://thedalesreport.com/cannabis/valens-poised-to-be-a-leader-in-cannabis-3-0/?fbclid=IwAR0MInTqAoJ6_Ciq6w2FFOGf4yk-3qMwecW_eSpnJXLgD2wxFRdxWdWVago

With all the hustle and bustle happening around some big moves in the United States over the last few weeks, we thought we would check in on facilities in Canada—what we could expect in our domestic market in the near future, especially with Cannabis 2.0 going strong, and 3.0 on the eventual horizon.

“Everyone is focused on the United States right now, which is great, but there is a lot of progress happening here,” said Everett Knight, Executive VP, Corporate Development & Capital Markets at The Valens Company (TSX:VLNS). “The marketplace is coming along nicely, and we’re on the road to make $3.2 billion within two and a half years,” said Knight, noting that Ontario especially is seeing a huge surge in retail storefronts, reaching 425 last week.

“This is just the beginning! We are in the first inning of a long-term growth trend,” Knight enthusiastically adds.

What is Cannabis 3.0?

Focused on “next generation” product development and innovation, The Valens Company is a leading manufacturer of cannabis derivative products with a mission to bring the benefits of cannabis to the world, and they are poised to lead in Cannabis 3.0 when it officially gets underway.

The Kelowna-based Company 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, offering these products as white-label services to Licenced Producers. They currently have two facilities, one in Kelowna (“K2”) and one in Toronto (“GTA Facility”).

Bruce Linton, former CEO of Canopy Growth summed up 3.0 to Cheddar as “the time you start reading data”, and this is what Knight at Valens echoes, who has been a close watcher of the industry since 2014. To use a familiar Canadian analogy, Knight says of Valens, “we like to look at where the puck is going, not where the puck is now”, saying that the company is taking note of other CPG industries and looking ahead based on consumer needs and demands.

Knight notes that right now in 2.0, we’re seeing a lot of “me too” products hit the market, where we’re not seeing much diversity in product categories, but lots of competition between brands.

Products We Can Expect to See in 3.0

While he couldn’t reveal too many trade secrets to The Dales Report, Knight did highlight an innovative product that spans 2.0 and 3.0. The company is currently innovating on the infused beverages that are currently in the market by bringing in emulsion technology. This will produce a quicker onset as well as a more reliable time period for effects. “We are creating more socially convenient ways of consuming cannabis,” says Knight.

In addition, 3.0 will bring in products like bath bombs, which are now being commissioned at the company’s K2 facility.

“The K2 Facility significantly bolsters our market position by giving us the operational footprint and expertise to fulfill the Valens vision and make us the go-to name in cannabis consumer packaged goods manufacturing in Canada and beyond,” said Tyler Robson, Chief Executive Officer, Co-Founder and Chair of The Valens Company in a corporate and operational update, “We are in the process of ramping up our K2 Facility in order to accommodate the growth we expect to see in our product volumes, launches and provincial demand – especially as we begin to introduce product formats that are new to the Canadian market.”

What Makes Valens a Company to Watch in 2021?

“2020 was a tough year for everyone,” says Knight, “but we took the year to look at the fundamentals and lay the foundation to be a company to watch in 2021.”

“All companies need to grade on fundamentals, decisions that leaders were making in the last year,” says Knight when investors are making decisions, “That will show what future years look like.”

Knight highlights strong SOPs and GMP certification as key to seeing a company’s abilities to expand, “If you’re going to work on a global scale, GMP is the single most important thing as a facility. The SOPs, GMP processing, and the overall learnings in Canada shouldn’t be underestimated.”

When asked about what more we can expect from 3.0, Knight left us with a big of a cliff-hanger, noting, “I think people will be surprised.”