Replies to post #3882 on The Valens Company Inc. (VLNS)

[FUNMAN]

Thanks for the O/S update. You furthered my highlighted point in the call transcript.

Hopefully Tyler Robson isn't "outsmarting" himself. They think Citizen Stash Company is the golden ticket. $54.3M for a company that produced revenues of $6M last year, and is on pace to at least double that having posted $12M in the first half of this year.

I hope Jarrett Malnarich didn't sell them a bill of goods. Especially since it appears that its Jarrett's brain that is the "golden-ticket" and not the actual company.

No matter how you cut it, The Street is going to find it hard to get excited about a few pennies net profit, which is going to be hard to do with over 220M shares outstanding.

So we need profits, but equally important, Valens must excite The Street with some outrageous new revenue gains.

GE_Jim Thursday, 09/02/21 03:01:54 PM
Re: FUNMAN post# 3878
Post # 3882 of 3882

We have got to be getting close to 220mil to 230mil shares that are going to be out there. That’s fine but now they will have to produce.

Next slide, from a transaction overview, as I said, $54.3 million transaction value fulfilled 100% through Valens common shares. As we said previously, on our previous acquisitions, we like to issue Valen's shares and the alignment that it creates between the shareholder bases. And in this case, you can see full buy-in, the opportunity and the go forward potential of the combined company. (IMO, I understand what they are doing by increasing assets and diluting shareholders. It will only benefit shareholders if the acquisition excites investors because of revenue growth and increased EPS profits driven to the bottom line; otherwise it's just dilution. They say it's accretive to shareholders in 2021. That can only happen because there's no debt, just dilution. - FUNMAN)