ASA Gold and Precious Metals Ltd C.ASA

Valens Releases Revenue Guidance for Fourth Quarter 2019

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Excerpts from recent Valens Press Releases on Q4 for those who may have missed or were not aware of them 

On  December 16, 2019 , In Press Releases

• Valens announces Q4 2019 revenue guidance of $27 million – $30 million, a near doubling of Q3 2019 reported revenue and resulting in estimated 2019 annual revenue of $55 million – $58 million
• Intention to commence a Normal Course Issuer Bid (“NCIB”), from time to time, with a view to maximizing shareholder value
• Significant increase in Valens’ white label product output and “Cannabis 2.0” product-focused distillate sales resulting in a significant rise in dollar per gram of input in comparison to Q3 2019
  KELOWNA, BC, Dec. 16, 2019 /CNW/ – Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF) (the “Company” or “Valens“), a cannabinoid-based product company with industry leading extraction, next generation cannabinoid delivery formats and an ISO 17025 accredited analytical lab, is pleased to announce revenue guidance for the recently completed fourth quarter 2019 in the range of $27 million to $30 million as well as its intention to commence a NCIB for the purchase and  cancellation of up to 6,275,204 of its common shares (the “Shares“) or 5% of the issued and outstanding Shares as calculated on a non-diluted basis. The NCIB will be funded with cash on hand and the Company’s current positive cash flow from operations.  

Revenue Guidance for Fourth Quarter 2019

The Company is pleased to announce revenue guidance for the recently completed fourth quarter of 2019 in the range of $27 million – $30 million, a significant increase over its third quarter 2019 revenue of $16.5 million.

The Company also expects to report that it has extracted over 24,400 kilograms of cannabis and hemp biomass in the fourth quarter of 2019. This is roughly in-line with the amount of biomass processed in Q3 2019 and reflects the anticipated shift in focus to white label manufacturing and the demand from our customers to launch a breadth of “Cannabis 2.0” products into the market. This breadth of products translated into smaller lot sizes and resulted in a temporary pause from the volume ramp seen in previous quarters but also resulted in a significant increase in our revenue per gram of input performance. Looking forward, Valens expects to see a return to an aggressive volume growth through its facilities as large amounts of hemp biomass are brought in from the fields and customers require the large production runs that are typical in such a fast-growing market.

“I couldn’t be more thrilled to share revenue guidance for Valens’ fourth quarter, which I believe is only starting to show the power of our platform,” says Tyler Robson, CEO of Valens. “The reason we have built five different types of extraction in house is so that we can facilitate being a one stop shop for our customers by having the means to produce a large variety of next generation white label products. This quarter shows the flexibility of our operations and represents an inflection point in our acceleration into “Cannabis 2.0″ oil-based products. Through the incredible demand we are seeing, we expect white label sales to continue to ramp up as we increase the number of white label contracts and volume of the contracts themselves.”

The full press release can be viewed/read here:
https://thevalenscompany.com/press-releases/valens-announces-revenue-guidance-for-fourth-quarter-2019-and-intention-to-commence-a-normal-course-issuer-bid/

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