KELOWNA, BC, Feb. 5, 2021 /CNW/ - The Valens Company Inc.
(TSX: VLNS) (OTCQX: VLNCF) (the "Company" or "The Valens
Company"), a leading manufacturer of cannabis
derivative products, is pleased to provide an operational and
corporate update regarding the progress of its second white label
and custom manufacturing facility in Kelowna and its facility in the Greater Toronto Area (the "GTA
Facility"), in addition to an update on the LYF Food
Technologies Inc. acquisition (the "LYF Acquisition").
K2 and GTA Facility Progress Update
The Valens Company has commenced its first shipments of cannabis
derivative products from its newly-operational K2 Facility,
including a wide range of products such as crumble, beverages, THC
drops, vapes, and tinctures. Currently, the Company has
commissioned the manufacturing of vapes, tinctures, beverages, and
bath bombs in the K2 Facility. Valens intends to further
operationalize the facility over the next few quarters to increase
the production, packaging, and shipping of its existing portfolio,
as well as a number of soon-to-be launched product formats such as
hash and pre-rolls.
With the K2 Facility in operation, Valens now has the ability to
fully leverage its low-cost cannabis platform to drive product
sales, accelerate entry into new innovative product verticals and
increase output volumes. The 42,000 square foot K2 Facility is
built to EU GMP standards and designed to efficiently execute on
each step of the cannabis consumer packaged goods supply chain,
positioning the Company as a leader in Cannabis 2.0 and 3.0 product
manufacturing.
"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. "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."
Additionally, construction is nearing completion at the
Company's GTA Facility which will focus on manufacturing products
with SōRSE™ by Valens technology, including the production and
co-packing of cannabis-infused beverages. Valens is in the process
of finalizing its Health Canada cannabis micro-processing licence
application and site evidence package for expected submission in
February.
LYF Acquisition Update
The Company is preparing for the integration of LYF's platform
and workforce as the LYF Acquisition closing process continues.
Last week, LYF received an amendment to its existing standard
cannabis processing licence, authorizing the sale of cannabis
derivative products. Under the amended Health Canada standard
processing licence, LYF is now permitted to sell cannabis products,
including topicals, extracts and edibles, directly to provincially
and territorially authorized retailers from its 10,500 square foot
edibles manufacturing facility in Kelowna, British Columbia. With this licence
amendment, LYF is able to further leverage and provide additional
sales capabilities to its partner network, including licensed
producers, third-party operators, and brand houses, which were
previously only obtainable through B2B sales channels.
Jeff Fallows, President of The
Valens Company, said, "The Valens team congratulates LYF on this
milestone achievement which is the culmination of years of
dedication and hard work. Not only will this amended licence work
to widen LYF's domestic reach, but it will also benefit consumers
nationwide who have been awaiting increased access to more advanced
and innovative edible products at affordable prices. Following the
closing of the LYF Acquisition, we look forward to bringing LYF's
next generation product capabilities to our existing customer base,
and further increasing our position as a leading third-party
manufacturer."
Pending closure of the LYF Acquisition, the LYF facility, in
addition to Valens' K1 and K2 Facilities, will serve as 2.0 and 3.0
manufacturing and sales hubs for LYF and Valens' combined roster of
new and joint customers, including consumer packaged goods
companies who have demonstrated interest in the cannabis space.
LYF's edible products are expected to be ready for shipment from
its facility directly to provinces and territories in the second
quarter of 2021.
The closing of the LYF Acquisition remains subject to approval
from the Toronto Stock Exchange and customary conditions, and
approvals from senior lenders. The LYF Acquisition is on track to
close on or around February 18,
2021.
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 press 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", "forecasts", "future", "indications", "potential",
"estimates", "predicts", "anticipate", "to establish", "believe",
"intend", "ability to", or statements that certain actions, events
or results "may", "should", "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, future outcomes of transactions
(including the LYF Acquisition), 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, Canadian regulatory risk,
Australian regulatory risk, U.S. regulatory risk, U.S. border
crossing and travel bans, the uncertainties, effects of and
responses to the COVID-19 pandemic, 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, 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.
