Valens Company Inc. (OTCMKTS:VLNCF) posted revenues of $17.6 million in Q2 2020. The company maintains $90.5 million as working capital. Its gross profits rose by 23.5% to $6.3 million.
Valens shares uplifted to TMX
Valens Company’s shares are uplifted to TMX (Toronto Stock Exchange) under the symbol ‘VLNS’ on April 16, 2020. In Q2 2020, the company canceled 43,600 shares after repurchase at around $2.25 for each share. According to Valens, its shares are trading at a discount price compared to its peers. It will acquire additional shares soon using NCB.
Expects to mobilize CAD 40 million
Valens will mobilize funds of CAD 40 million through a secured debt financing. To this effect, the company signed a deal with a syndicate of creditors like ATB Financial and Canadian Imperial Bank of Commerce. The company already received CAD 20 million in May 2020.
After Q2, 2020, the company changed its name to ‘The Valens Company Inc.’ It helps the company to strengthen its position in the production and development of CBD products. The slowdown in the cannabis industry in Q2 caused a drop in sales of distillate product oil and toll extraction revenues. However, it posted an increase in revenues from white-label, custom manufacturing, and co-packing accords QoQ.
CEO of Valens, Tyler Robson, said the company expects to post higher revenues in H2 2020 because of a surge in agreements to add more partners. The company will produce and distribute products in new formats to satisfy the growing demand from the provincial suppliers by expanding its cannabis 2.0 product lines. In Q2, Valens shifted its focus to the extraction of hemp and cannabis biomass. It processes more than 30,000 Kg of hemp and cannabis to produce inputs for cannabis 2.0 products.
Valens posted record production growth of 300% to 36 SKUs in Q2 2020. The company unveiled cannabis-infused beverages as per the white label agreement with Iconic Brewing’s subsidiary – A1 Cannabis Company in Canada.
To help combat the coronavirus crisis, Valens manufactured 30,000 hand sanitizer bottles at its production facility in Kelowna. The company also signed a distribution pact with the biggest medical use cannabis distributor in Australia – Cannvalate Pty Ltd.