Kelowna, B.C., September 18, 2020 – The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) (the “Company” or “The Valens Company”), a global leader in the end-to-end development and manufacturing of innovative, cannabinoid-based products, today announced that 56 white label and custom manufacturing product SKUs were produced in the third quarter of 2020, a 56% increase from 36 SKUs in the second quarter of 2020.
The 56 SKUs were manufactured in partnership with over ten of the Company’s customers and span four of its product categories, with formats ranging from disposable vapes, vape cartridges, oils and oral sprays, to beverages and concentrates. The increase in SKUs quarter-over-quarter can be attributed to new brand partnerships and white label and custom manufacturing agreements announced in the third quarter, in addition to the expansion and fulfillment of existing contracts to serve the demand for oil-based products in the Canadian market.
Three of the product SKUs produced in the third quarter were developed as part of the Company’s distribution agreement with Cannvalate Pty Ltd, Australia’s largest medicinal cannabis distributor and clinical research organization. The manufactured products include a 1:20 CBD oil, 10:10 oil, and 1:10 CBD oil. The product orders were completed and shipped after successful product stability testing and receipt of shipping permits, marking The Valens Company’s first shipment to the Australian market. The Company also expects to make an additional shipment of oils to Australia within the next few weeks, subject to shipping permit approvals.
“In the third quarter, Valens manufactured the widest range and highest number of oil-based products in partnership with some of the most prominent brands, companies and distributors in the cannabis space on a domestic and international scale,” said Tyler Robson, Chief Executive Officer of The Valens Company. "As a result of the challenging extraction environment discussed in the second quarter, we have accelerated our custom manufacturing and white label services footprint, allowing the Company to improve efficiencies and increase its production and manufacturing resources. As Valens continues to advance its product development capabilities, producing a bespoke portfolio across all oil-based product categories will serve as a key differentiator for our business as we work to enter new strategic partnerships globally.”
All financial information for the third quarter of 2020 is currently being finalized and is expected to be released in mid-October. As such, the Company is unable to provide any financial guidance for the third quarter ended August 31, 2020 at this time.
About The Valens Company
The Valens Company is a global leader in the end-to-end development and manufacturing of innovative, cannabinoid-based products. The Valens Company is focused on being the partner of choice for leading Canadian and international cannabis brands by providing best-in-class, proprietary services including CO2, ethanol, hydrocarbon, solvent-less and terpene extraction, analytical testing, formulation and product development and custom manufacturing. Valens is the largest third-party extraction company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass at our purpose-built facility in Kelowna, British Columbia which is in the process of becoming European Union (EU) Good Manufacturing Practices (GMP) compliant. The Valens Company currently offers a wide range of product formats, including tinctures, two-piece caps, soft gels, oral sprays and vape pens as well as beverages, concentrates, topicals, edibles, injectables, natural health products and has a strong pipeline of next-generation products in development for future release. Finally, The Valens Company’s wholly-owned subsidiary Valens Labs is a Health Canada licensed ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant-Based Science. For more information, please visit https://thevalenscompany.com. The Valens Company's investor deck can be found specifically at https://thevalenscompany.com/investors/.
For further information, please contact:
Jeff Fallows
The Valens Company
Investor Relations
ir@thevalenscompany.com
1 647.956.8254
KCSA Strategic Communications
Phil Carlson / Elizabeth Barker
VLNS@kcsa.com
1 212.896.1233 / 1 212.896.1203
Media
KCSA Strategic Communications
Anne Donohoe
adonohoe@kcsa.com
1 212.896.1265 | |