Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

The Valens Company overcomes coronavirus restrictions to post fiscal Q1 revenue bump

% of readers think this story is Fact. Add your two cents.


The Valens Company Inc (TSE:VLNS) (OTCQX:VLNCF) (FRA:7LV) announced that provincial cannabis sales increased in its fiscal first quarter despite restrictions on storefronts being a drag on the Canadian cannabis market as a whole.  

For the three months ended February 28, provincial sales climbed 7.6% quarter-over-quarter even as provincial inventory rationalization and retail store opening limitations impacted companies in the cannabis sector. 

Overall, net revenue increased 24.7% quarter-over-quarter to C$20 million from $16 million in the fourth quarter of fiscal 2020. Valens’ estimated its share of the extract-based market increased to roughly 5.5% in Alberta, British Columbia and Ontario in the quarter, up from about 4.9% the quarter prior, based on Headset data and not including B2B LP manufacturing, the company said.

READ: The Valens Company announces launch of nūance CBD bath bombs

“In the first quarter of 2021, Valens built upon the solid foundation that was laid in 2020 as we continue to lead the Canadian industry as a highly trusted third-party manufacturer of cannabis consumer packaged goods,” CEO Tyler Robson said in a statement. “Despite a slowdown in Canadian cannabis sales early in the year as a result of storefront restrictions and provincial inventory management due to the pandemic, we had strong sales growth with provincial sales increasing quarter-over-quarter.”

Robson isn’t expecting things to slow down any time soon.

“We expect to grow our provincial sales through fiscal 2021 as we continue to manufacture winning SKUs across all Cannabis 2.0 categories,, including the newly-entered edibles and topicals segments, and an evolving portfolio of Cannabis 3.0 products,” Robson said. “With the addition of the LYF Facility and the GTA Facility nearing completion, our strengthened manufacturing platform allows us to efficiently launch new SKUs, increase our market share alongside our customers and provides the capacity for us to drive significant volumes of previously launched and trusted products that have continued to gain acclaim from consumers across the country.”

Valens ended the quarter with C$49.3 million in cash on hand. Since then, the company further improved its capital position with the closing of its bought deal public offering for total gross proceeds of $39.7 million. Most of that money is expected to go toward strategic mergers and acquisitions, the company said.

“The solid financial results that we reported today for Q1 2021 reflect our successful transformation as a business through several key strategic initiatives and during an uncertain, challenging pandemic environment,” President Jeff Fallows said. “With our recent public financing, we have a strong capital position to fuel our growth as we launch new and innovative Cannabis 2.0 and 3.0 product formats and agreements, continue to build out our manufacturing capabilities and accelerate our international expansion strategy.”

Valens recently entered into an extraction and custom manufacturing agreement with Rubicon Organics, where it will 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 LP’s product portfolio, the company said. 

Additionally, the company reached a custom manufacturing agreement earlier this year with Experion Biotechnologies Inc to provide end-to-end pre-roll manufacturing services and product distribution services, with continued discussions to expand the existing agreement to include additional product development and manufacturing services for a range of next generation products.

Contact Andrew Kessel at [email protected]
 
Follow him on Twitter @andrew_kessel

Story by ProactiveInvestors


Source: http://www.proactiveinvestors.com/companies/news/946705/the-valens-company-overcomes-coronavirus-restrictions-to-post-fiscal-q1-revenue-bump-946705.html


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.