RE:RE:RE:RE:RE:Merry Christmas see you at $1.50 Benedictus wrote: I honestly expected Valens to pop significantly on the Tilray news as investors bought up cheaply valued companies in the sector on an expectation of continued consolidations and M&A . The writing is on the wall, for many of these debt bloated high cost producers, it's cut,cut,cut, consolidate or die. It has been one of the ugliest examples of destroying investor capital; reminds me of the dot.com days.
Where the Tilray / Aphria deal is concerned, I'm not sure I see any short-term benefit to Valens. From one point of view, the extraction business, it could actually hurt because I believe Aphria has extraction capabilities so perhaps Tilray will leverage their new in-house capability as opposed to sub-contracting to Valens? I dont think Valens will care much since they've been pivoting away from toll extraction anyway. On the other hand, if Tilray think it's more cost -effective to close down Aphria's extraction facility and outsource to a service-provider like Valens, it could be a benefit.
In terms of further M&A, I agree that we will see more as producers/growers are forced to consolidate or go bust, but how exactly does that benefit a company like Valens that has switched to CPG and 3.0? Do you see any potential M&A between Valens, Neptune, Labs, etc? I don't.
Personally I think it's steady as she goes for Valens. I think the recent lack of news out of Valens is because they're heads-down getting K2 up and running, and waiting for the new year to release news... just a hunch.