Nextleaf Solutions Ltd C.OILS

Valens being bought today for $138 millions

[Adventurous]

One of our main competitors is being bought for some 30% over share price by a major Canadian cannabis retailer looking for vertical integration. Consolidation of the sector is continuing. Nextleaf now looks pretty from an acquisition standpoint.

[Snookyb1]

So... 0.17 for Nextleaf buyout ? 

[LastoftheFranks]

Valens exited extraction and pivoted to CPG long ago, they were the first to read the tea leaves on where the CO2 extraction bubble was headed. That said, Valens is also hemorrhaging money and SNDL is it's own unique dumpster fire.  That said, if Nextleaf was pulling in $20-25M per Q like Valens does the stock price here would be a rocketship.

[Adventurous]

You are right. Looking more closely at the transaction, it is only 10% over Friday's share price - and down today. Shareholders not pleased to get 9.5% of the new company. Bye, bye Valens. You are right again about extraction. They claim to form a dominant new vertically-integrated company, but no mention of extraction. They indeed seem to have left the sector completely. This is good for

[LastoftheFranks]

Last year at this time, SNDL filings showed $1B in the bank. They now have ~$350M.   Valens could never avoid their main issue: The cost of processing using CO2 is too high and time consuming. It's a pincer. In a perpetual disinflationary environment like cannabis, any bulk order they acquired for input, by the time processing is complete the cost of said inputs had fallen

[stealthct]

deflationary bust is going to be epic. small companies going to get totally rekt.

[Snookyb1]

Stealth what's  that mean for Nextleaf? 150 million buyout