M&A accretive value and strategic splitting of the atomWhen everything is done shaking out, and things normalize in a slightly more mature industry--- investors will look back and view the M&A strategy from Valens as provactively simple, strategic, realistic and beautiful.
In a short while, any company in the space will be trading off a ratio to ebitda (assuming some more mergers happen and some poor performers fold up and go away). I suspect this number will be as it is in the States, ranging from 15 - 20x earnings (and higher, it will normalize much higer when safe banking act is in, and growth rates kick in- we need to remember we are very early stages of a new industry).
Valens just acquired a company for what 4.2x 2022? that is in the same space but isn't necessarily a pot company. Another pot company with a side business of making chocolate internally would have been a terrible investment. This one is beautiful.
The accretive M&A value is palpable, the strategic value is jet fuel.
M&A 3.0. Buy at 4x and be valued at 20x. Synthesized magic.
Cannabis 3.0. Strategicically, according to Tyler is 1 + 1 = 5. What does this mean? Assuming it means: that Valens has become a one stop shop for all things beverage, edible, vapable and individualized experiences and tastes. Not a lemonade stand, a full stop shop!
Couple more transactions like that and Valens is a Tier 1 global company. (the shelf prospectus = the bread crumbs).