KELOWNA, BC, Nov. 22, 2021 /PRNewswire/ - The Valens
Company Inc. (TSX: VLNS) (OTCQX: VLNCF) (the "Company," "The
Valens Company" or "Valens"), a leading manufacturer of cannabis
products, today announced that Pommies (otherwise known as Southern
Cliff Brands) has been issued a micro-processing licence from
Health Canada for its manufacturing facility located in the
Greater Toronto Area (the "GTA
Facility"). With this licence, Valens active manufacturing platform
now extends from Western to Eastern
Canada, increasing speed-to-market capabilities while
optimizing distribution cost-savings and efficiencies.
The GTA Facility provides Valens with an additional 30,000
square feet of licensed production and manufacturing space to
execute on its cannabis-infused beverage commercialization and
distribution strategy. The facility can support 8 million units per
year on a single shift and can produce cannabis-infused beverages
in both cans and PET bottles across various sizes and formats
including carbonated and non-carbonated juices and waters, drops
and single shots. The facility is right sized for the Canadian
cannabis industry today and was designed with ample space for
expansion if and when required, with minimal additional capital
expenditures. The facility is strategically positioned north of
Toronto and near Pearson
International Airport. This positioning provides for optimal
shipping into Canada's largest
markets while utilizing significant amounts of automation. This is
anticipated to enhance margins on beverages as they are currently
being manufactured out of Valens' Kelowna campus in Western Canada.
Products developed and manufactured in the GTA facility will
utilize Valens' powered by
SōRSE™ emulsion technology, resulting in
consumer products that are free of cannabis taste and aroma with
predictable onset and offset timing. Valens R&D team has been
active in formulating new products soon to be available in the
Canadian market and is excited to introduce its innovative pipeline
into the beverage and other 2.0 and 3.0 categories.
In Q3 2021, Valens' estimated share of the cannabis-infused
beverage category grew to approximately 9.0% from 5.5% in Q1 2021
in Alberta, British Columbia, and Ontario, based on Hifyre data, with only one
customer in this category to date. Upon commencing commercial
operations at the GTA Facility, Valens will seek to grow its market
share in the beverage category by accelerating the penetration of
its internal brand portfolio, increasing its partnership network
and expanding its product portfolios with existing customers.
"Despite delays caused by the pandemic, we have achieved a major
milestone in our domestic expansion strategy with the receipt of
this micro-processing licence," said Tyler
Robson, Chief Executive Officer, Co-Founder, and Chair of
The Valens Company. "As one of the first companies to launch
cannabis-infused beverages in Canada, we quickly learned what was required
to succeed in the category – quality and innovation. We have been
working tirelessly to strengthen our resources and capabilities to
continue successfully serving the cannabis-infused beverage market
in Canada. With the ability to
utilize the GTA Facility, we are ready to put our best foot forward
and lead the category with a variety of exciting new products which
will be available to our customers and consumers over the coming
quarters."
All production equipment at the GTA Facility is fully
operational and is expected to be commissioned in the coming weeks.
Valens expects to begin manufacturing, commercializing and shipping
products from the GTA Facility in the first fiscal quarter of 2022
and anticipates an increase in utilization over 2022 as the demand
for its products continues to grow. Additionally, Pommies expects
to imminently submit a sales licence application for the GTA
Facility.
The micro-processing licence was issued in accordance with the
Cannabis Act and Cannabis Regulations and was based on the approval
of the site evidence package that was submitted earlier this year
in February.
At Valens, it's Personal.
About The Valens Company
The Valens Company is a leading manufacturer of cannabis
products with a mission to bring the benefits of cannabis to the
world. The Company provides proprietary cannabis processing
services, in addition to best-in-class product development,
manufacturing, and commercialization of cannabis consumer packaged
goods. The Valens Company's high-quality products are formulated
for the medical, health and wellness, and recreational consumer
segments, and are offered across all cannabis product categories
with a focus on quality and innovation. The Company also
manufactures, distributes, and sells a wide range of CBD products
in the United States through its
subsidiary Green Roads, and distributes medicinal cannabis products
to Australia through its
subsidiary Valens Australia. In partnership with brand houses,
consumer packaged goods companies and licensed cannabis producers
around the globe, the Company continues to grow its diverse product
portfolio in alignment with evolving cannabis consumer preferences
in key markets. Through Valens Labs,
the Company is setting the standard in cannabis testing and
research and development with Canada's only ISO17025 accredited analytical
services lab, named The Centre of Excellence in Plant-Based Science
by partner and scientific world leader Thermo Fisher Scientific.
Discover more on The Valens Company at
http://www.thevalenscompany.com.
Notice regarding Forward Looking Statements
All
information included in this press release, including any
information as to the future financial or operating performance and
other statements of The Valens Company that express management's
expectations or estimates of future performance, other than
statements of historical fact, constitute forward-looking
information or forward-looking statements within the meaning of
applicable securities laws and are based on expectations, estimates
and projections as of the date hereof. Forward-looking statements
are included for the purpose of providing information about
management's current expectations and plans relating to the future.
Wherever possible, words such as "plans", "expects", "scheduled",
"trends", "forecasts", "future", "indications", "potential",
"estimates", "predicts", "anticipate", "to establish", "believe",
"intend", "ability to", or statements that certain actions, events
or results "may", "should", "could", "would", "might", "will", or
are "likely" to be taken, occur or be achieved, or the negative of
these words or other variations thereof, have been used to identify
such forward-looking information. Specific forward-looking
statements include, without limitation, all disclosure regarding
future results of operations, future outcomes of transactions,
economic conditions, and anticipated courses of action. Investors
and other parties are advised that there is not necessarily any
correlation between the number of SKUs manufactured and shipped and
revenue and profit, and undue reliance should not be placed on such
information.
The risks and uncertainties that may affect forward-looking
statements include, among others, Canadian regulatory risk,
Australian regulatory risk, U.S. regulatory risk, U.S. border
crossing and travel bans, the uncertainties, effects of and
responses to the COVID-19 pandemic, reliance on licenses, expansion
of facilities, competition, dependence on supply of cannabis and
reliance on other key inputs, dependence on senior management and
key personnel, general business risk and liability, regulation of
the cannabis industry, change in laws, regulations and guidelines,
compliance with laws, limited operating history, vulnerability to
rising energy costs, unfavourable publicity or consumer perception,
product liability, risks related to intellectual property, product
recalls, difficulties with forecasts, management of growth and
litigation, many of which are beyond the control of The Valens
Company. For a more comprehensive discussion of the risks faced by
The Valens Company, and which may cause the actual financial
results, performance or achievements of The Valens Company to be
materially different from estimated future results, performance or
achievements expressed or implied by forward-looking information or
forward-looking statements, please refer to The Valens Company's
latest Annual Information Form filed with Canadian securities
regulatory authorities at www.sedar.com or on The Valens Company's
website at www.thevalenscompany.com. The risks described in such
Annual Information Form are hereby incorporated by reference
herein. Although the forward-looking statements contained herein
reflect management's current beliefs and reasonable assumptions
based upon information available to management as of the date
hereof, The Valens Company cannot be certain that actual results
will be consistent with such forward-looking information. The
Valens Company cautions you not to place undue reliance upon any
such forward-looking statements. The Valens Company disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as required by applicable law. Nothing herein
should be construed as either an offer to sell or a solicitation to
buy or sell securities of The Valens Company.
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SOURCE The Valens Company Inc.