RE:RE:RE:RE:RE:2 year Shelf prospectus on sedarI dont remember anyone mentioning a requirement for "high-end" equipment to meet EU GMP requirements. GMP certification is process-driven, not equipment driven. It requires production areas of a facility to be fixed into a specific configuraiton, so that a production process and level of quality can be proved to be repeatable. That reduces a company's flexibility to re-configure their production facilities to adapt to changing market conditions.
Where GMP is concerned, I've heard Valens say two things: 1) they dont think they've missed any significant opportunities in the EU because things are moving slowly over there, and 2) the K2 facility has been designed to be flexible, and they're reluctant to lock parts of it into a specific configuration to chase GMP certification.
As for Valens production equipment, consider the lab they have on-site in Kelowna: "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". I've visited Valens lab in Kelowna. They had pieces of equipment in there that costs hundreds of thousands of dollars for one device. Does that sound like a company that buys second-rate production equipment? No way. Valens has always been about quality, consistency, only the very best is good enough. From day 1, they've exceeded requirements, here's an example - go back and take a look at the level of security they built at K1. I'd never seen anything like it, and when we discussed that, they said they decided to build to the highest security standard even though it FAR exceeded HC requirements. That's the attitude that Valens management has always had.
What I wonder, could this Shelf prospectus have anything to do with a strategy to push back against a hostile takeover?
Benedictus wrote: My thoughts on the shelf:
- when I saw the write down and debt pay down I had a feeling a placement would be in the offing. For significant international expansion (ex US) they will require the EU GMP certification for part of.K2 facility and from one of their calls they mentioned that cert will entail additional capex for high end equipment, along with the capex for completion of pommies buildout, and expansion into Australia and possibly US. $20M cash just won't get that done.
- the potential for a placement will undoubtedly act as an overhang on the share price until it's announced and closed
- this may be one of the reasons the shorts have been all over this stock despite its recent climb.
having said all that I'd be happy if I'm wrong I really do not enjoy seeing an investment I am in stagnate or drop and not participate in the momentum of the overall sector due to the uncertainty of a pending placement. All imo