Valens GroWorks Corp. (CSE: VGW) (CSE: VGW.CN) (CNSX: VGW) is a vertically integrated provider of Canadian licensed cannabis products focused on supplying a diverse range of high quality products and strains at competitive prices, while adhering to a strict quality assurance protocol that meets or exceeds current Good Manufacturing Practices (cGMP) standards. This focus on quality is demonstrated by the company through the use of its “Cannabis Management System”, which provides for the systematic tracking of plants from seed to sale and includes the implementation of industry recognized best practices for cultivation, harvesting, post-harvest, and packaging and quality assurance practices commonly employed in the food manufacturing industry.

Valens GroWorks Corp. (CSE: VGW) (the “Company” or “Valens”) is a multi-licensed, vertically integrated provider of cannabis products and services with a unique focus on standardized cultivation, manufacturing and distribution of cannabis products. With the focus now shifting to commercial production and supply agreements with provinces and territories, Valens is well positioned to be a major player in Canada’s burgeoning cannabis industry. In this article we will look at what the Company has been doing in the past months and what to expect in the future.

Cannabis Operator Valens Evolves Its Focus and Global Reach With…

Exclusive interview with Tyler Robson, CEO of Valens.

Valens (TSX: VLNS) (OTCQX: VLNCF) began with a mission to become a leader in cannabis extraction and production. Since then, the company’s business model has evolved into a complete cannabis solution. CEO and President Tyler Robson last spoke with New Cannabis Ventures in October 2019 and discussed The Valens Company’s rebranding, evolving business model, and acquisitions. An audio recording of the entire interview is available at the end of this written summary.

Talent and automation

Robson, President Jeff Fallows, CFO Chris Buesen and COO Chantel Popoff make up the core management team. The company’s team has grown significantly; Valens now employs approximately 350 people. It has expanded its staff to include supply chain expertise. However, Robson expects the team’s growth to slow as Valens focuses on implementing more automation.

The Valens team has grown significantly over the past two years.

Cannabis Operator Valens Evolves Its Focus and Global Reach With…

Rebranding

Valens may have started out as an extractor, but as he evolved, he became much deeper. In the summer of 2020, the company was renamed to reflect its move to an end-to-end solution that includes product development, innovation, distribution, sales and marketing.

As a leading third-party manufacturer, Valens is diversifying its product offerings with new SKUs and continues to explore new revenue opportunities across verticals, Robson said.

Position on the Canadian market

Valens has approximately 100,000 square feet of operating space in the Canadian market, with an additional 35,000 square feet coming online in June. The company expanded its platform in Canada with the acquisition of food manufacturer LYF Food Technologies. LYF provides the company with a flexible and diversified platform to capitalize on the growing opportunities in the health and wellness category.

In the Valens factory

Cannabis Operator Valens Evolves Its Focus and Global Reach With…

Moving to the US

With the acquisition of the player CBD Green Roads, Valens also enters the American market. The company looked at more than 100 potential acquisitions in the United States and decided Green Roads was the right choice. Green Roads distributes its products to more than 7,000 retail outlets, and Valens will use its intellectual property and innovations to double production, Robson said. The transaction is expected to close in June.

In the past, Valens has focused on the B2B segment, but as part of its U.S. strategy, the company will now also focus on the B2C category. The company is gearing up for development in the U.S. and preparing for federal legalization when it happens. Further strategic mergers and acquisitions in the US will likely be part of Valens’ mandate.

Global distribution

In addition to its presence in North America, Valens exports worldwide. Its global distribution network already covers Europe and Australia, and Robson expects the company to step up its efforts to expand its international capabilities, particularly in the area of active pharmaceutical ingredients.

Capital position

Valens is well capitalized and has cash and cash equivalents of $49.3 million. Robson believes the company can stand on its own two feet in the future. The company has no immediate need for additional capital, but will keep its options open if a suitable opportunity arises.

Strategic growth and automation are two of the priorities with which the company intends to put its capital into practice. The company wants to optimize its production capacity in order to increase its throughput and ensure its strategic growth.

SKU optimization

The company’s top 18 or so SKUs account for 80% of sales. The company will focus on rationalizing SKUs, moving away from low-yielding SKUs and focusing on high-yielding SKUs.

Valens is also looking for new income opportunities. For example, it was recently included in the Floral and Preroll categories. Robson expects further growth in the nutritional supplements, topicals and beverages categories.

Valens is looking to increase sales in several verticals, including thematic.

Cannabis Operator Valens Evolves Its Focus and Global Reach With…

The way forward

COVID-19 remains a challenge as outlets in Ontario remain closed. In addition, regulatory uncertainty in the US remains an important factor. Robson, however, sees the acquisition of Green Roads as the first piece of the puzzle in the company’s penetration strategy in the U.S.

New Cannabis Ventures provides an investor dashboard for The Valens Company, which is a client of New Cannabis Ventures. Listen to the interview in its entirety:

Stay ahead of the crowd by subscribing to 420 Investor, the largest and most comprehensive subscription service for cannabis dealers and investors since 2013.

Cannabis Operator Valens Evolves Its Focus and Global Reach With…Cannabis Operator Valens Evolves Its Focus and Global Reach With…

Carrie Pallardi, a Chicago-based writer and editor, began her career in health care. Today she writes, edits and interviews subject matter experts in various sectors. As a published author, Carrie continues to tell compelling new stories to her network of readers. Please contact us for more information.

 

 

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