Valens Company Inc (OTCMKTS:VLNCF) reported a growth of 24.7% QoQ to $20.014 million in Q1 2021. It is on the backdrop of improved sales of distillate, isolate, and finished goods besides other ingredients in the quarter.
Its profits account for 21.9% of the revenues to $4.8 million. The profit in Q1 2021 declined because of the impact of ongoing coronavirus. Co-founder and CEO of Valens, Tyler Robson, said the solid foundation laid in the previous year helped the company post better results in Q1 2021.
Expects to maintain growth in 2021
The company maintains a lead as a trusted producer of cannabis consumer packaged goods. Tyler said Valens will maintain growth momentum in 2021 by focusing on the production of SKUs across all cannabis 2.0 products like topical and edibles.
Its GTA facility and LYF facilities are expected to be operational soon. Valens can introduce innovative SKUs with these new facilities and improve market share besides improving volumes of previously unveiled products.
The production of finished goods in 12 months ending 2021 is 1.4 million units. It is a leading third-party vape producer in Canada.
According to Headset data, the company manufactured and distributed Tropic Lemon 1.0 g Vape cartridges, the best-selling vape SKU, across Ontario, British Columbia, and Alberta in Q1 2021.
Raises $39.7 million
On January 29, 2021, Valens raised a capital of $39.7 million in a bought deal offering. It will use the proceeds for business expansion and M&A in Canada and overseas markets. The company will also use a certain portion of the funds for general corporate purposes and working capital requirements.
Valens received an amended license from Health Canada to sell dried cannabis products to territorial and provincial retailers across Canada.
Canadian customers now have access to cannabis products of Valens. The company will commence shipment of dried cannabis products such as pre-rolls and flower in Q2 2021 to various provinces.
Strategic initiatives in 2021
Valens will focus on global markets and in the US to promote growth in 2021. The company entered the edibles market by clinching LYF Food Technologies.
Valens will offer baked goods, chocolates, and gummies. In alliance with Verse Cannabis, the company introduced soft chews in British Columbia, Ontario, and Alberta.
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