The Valens Company Expands Product Distribution Capabilities with Amended Health Canada Licence to Sell Dried Cannabis Products

Rhea-AI Summary

The Valens Company has received an amendment to its Health Canada standard processing licence, allowing it to sell and distribute pre-rolls and dried cannabis derivative products. This amendment significantly expands the Company's market reach, enabling sales to authorized retailers across Canada beginning in Q2 2021. With an array of cannabis extract products already in its portfolio, Valens aims to meet consumer demand with competitively priced offerings. CEO Tyler Robson emphasized that this licence, along with their low-cost production platform, will provide a competitive edge in a price-sensitive market.

Positive

• Amended Health Canada licence expands market by permitting the sale of pre-rolls and dried cannabis products.
• Enables distribution to authorized provincial and territorial retailers across Canada.
• Addition of pre-rolls and dried cannabis enhances Valens’ product portfolio.
• Company positioned to manufacture high-quality products at competitive pricing.

Negative

• None.

Licence will allow Valens to sell and distribute pre-rolls and dried cannabis derivative products, expected to begin in Q2 2021

KELOWNA, BC, Feb. 12, 2021 /PRNewswire/ - The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) (the "Company," "The Valens Company" or "Valens"), a leading manufacturer of cannabis derivative products, has received an amendment to its existing Health Canada standard processing licence permitting the sale of dried cannabis products to authorized provincial and territorial retailers in Canada. This licence amendment allows The Valens Company to distribute next generation dried cannabis derivative products across the country, increasing the Company's total addressable market.

Pre-rolls and dried cannabis derivative products will be the latest additions to the Company's growing portfolio of in-demand offerings, which includes a variety of cannabis extract products such as vapes, concentrates, edibles, beverages, and topicals. With this new licence, The Valens Company can now offer a complete range of products to its customers in the Canadian recreational cannabis market. 

"At the request of our partners we are increasing our product offering to include pre-rolls and next generation dried cannabis products," said Tyler Robson, Chief Executive Officer, Co-Founder and Chair of The Valens Company. "We believe that this licence, paired with our low-cost platform, will drive a competitive advantage for our partners in a category with price sensitive consumers."

With access to competitively priced fresh and dried cannabis sources, Valens is strongly positioned to develop and manufacture the highest-quality dried cannabis derivative products at a category shaping value proposition. A variety of pre-roll formats, in numerous blends and sizes, are currently under development at Valens' newly-operational K2 facility located in Kelowna, British Columbia.

About The Valens Company

The Valens Company is a leading manufacturer of cannabis derivative products with a mission to bring the benefits of cannabis to the world. The 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. The Valens Company's high-quality products are exclusively formulated for the medical, therapeutic, health and wellness, and recreational consumer segments, and are offered across numerous product formats, including oils, vapes, concentrates, edibles and topicals, as well as pre-rolls, with a focus on next-generation product development and innovation. Its breakthrough patented emulsification technology, SōRSE™ by Valens, converts cannabis oil into water-soluble emulsions for seamless integration into a variety of product formats, allowing for near-perfect dosing, stability, and taste. In partnership with brand houses, consumer packaged goods companies and licensed cannabis producers around the globe, the Company continues to grow its diverse product portfolio in alignment with evolving cannabis consumer preferences in key markets. Through its wholly owned subsidiary Valens Labs Ltd., the Company is setting the standard in cannabis testing and research and development with Canada's only ISO17025 accredited analytical services lab, named The Centre of Excellence in Plant-Based Science by partner and scientific world leader Thermo Fisher Scientific. Discover more on The Valens Company and its subsidiaries at http://www.thevalenscompany.com.

Notice regarding Forward Looking Statements

All information included in this news release, including any information as to the future financial or operating performance and other statements of The Valens Company that express management's expectations or estimates of future performance, other than statements of historical fact, constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management's current expectations and plans relating to the future. Wherever possible, words such as "plans", "expects", "scheduled", "trends", "indications", "potential", "estimates", "predicts", "anticipate", "to establish", "believe", "intend", "ability to", or statements that certain actions, events or results "may", "could", "would", "might", "will", or are "likely" to be taken, occur or be achieved, or the negative of these words or other variations thereof, have been used to identify such forward-looking information. Specific forward-looking statements include, without limitation, all disclosure regarding future results of operations, economic conditions and anticipated courses of action. Investors and other parties are advised that there is not necessarily any correlation between the number of SKUs manufactured and shipped and revenue and profit, and undue reliance should not be placed on such information.

The risks and uncertainties that may affect forward-looking statements include, among others, that the LYF Acquisition does not close,  the Milestones are not met, the increase to the Company's EBITDA and diluted EPS is not achieved, regulatory risk, United States border crossing and travel bans, reliance on licenses, expansion of facilities, competition, dependence on supply of cannabis and reliance on other key inputs, dependence on senior management and key personnel, general business risk and liability, regulation of the cannabis industry, change in laws, regulations and guidelines, compliance with laws, reliance on a single facility, limited operating history, vulnerability to rising energy costs, unfavourable publicity or consumer perception, product liability, risks related to intellectual property, product recalls, difficulties with forecasts, management of growth and litigation, many of which are beyond the control of The Valens Company. For a more comprehensive discussion of the risks faced by The Valens Company, and which may cause the actual financial results, performance or achievements of The Valens Company to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to The Valens Company's latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on The Valens Company's website at www.thevalenscompany.com. The risks described in such Annual Information Form are hereby incorporated by reference herein. Although the forward-looking statements contained herein reflect management's current beliefs and reasonable assumptions based upon information available to management as of the date hereof, The Valens Company cannot be certain that actual results will be consistent with such forward-looking information. The Valens Company cautions you not to place undue reliance upon any such forward-looking statements. The Valens Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Nothing herein should be construed as either an offer to sell or a solicitation to buy or sell securities of The Valens Company.

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SOURCE The Valens Company Inc.

FAQ

What new license did Valens Company receive?

Valens Company received an amendment to its Health Canada standard processing licence allowing it to sell pre-rolls and dried cannabis products.

When will Valens Company start selling new products?

Valens Company expects to begin selling pre-rolls and dried cannabis derivative products in Q2 2021.

What is the impact of the new license on Valens Company's market?

The new license significantly expands Valens Company's total addressable market by allowing sales to authorized retailers across Canada.

How does Valens Company plan to compete in the market?

Valens aims to leverage its low-cost production platform and competitive pricing to gain an advantage in a price-sensitive consumer market.