Kelowna BC-based cannabis extraction company
The Valens Company Inc. (
TSX.VLNS) announced Monday it has bought another Kelowna cannabis firm, LYF Food Technologies Inc. Valens purchased LYF – a leader in Canadian edibles manufacturing – for $24.9 million in cash and stock, plus up to $17.5 million if certain milestones are achieved.
Valens CEO, Tyler Robson commented on reaching the deal:
"LYF has set the standard of what high quality edibles should be and has developed a diverse and flexible manufacturing platform to play a dominant role in the Canadian edibles market. LYF stood out for its product innovation and marketing teams, as well as its broad range of edible products which will introduce new formats to Canadian consumers that are typically only available in more mature markets. We look forward to further developing our product offering to reach more consumers with high-quality and unique cannabis edibles as this product segment continues to gain in popularity."
Valens and LYF are located just minutes apart from each other, which is believed to helped facilitate bringing the two companies together.
VLNS dropped nearly 10% at the conclusion of trading Monday on the TSX.
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