Valens GroWorks Corp (CSE:VGW) (the “Company” or “Valens”), a multi-licensed, vertically integrated provider of cannabis products and services utilizing proprietary extraction processes is pleased to announce that it has signed a share purchase agreement (the “Agreement”) with Australian-based RotoGro International Limited (“RotoGro”) to sell one of the Company’s wholly owned subsidiaries, Supra THC Services Inc. (“Supra”), which currently holds the Company’s second Dealers License, for total consideration of $11,000,000. Concurrently with the transaction, the Company will transfer all of the existing assets of Supra, except the license, into a new subsidiary Valens Labs Ltd. (“Valens Labs”) and sell the remaining entity to RotoGro. Valens Labs will provide the new platform for the Company’s lab service business and ensure a seamless transition following the sale of Supra.
Sale of Supra THC Services Inc.
Under the terms of the Agreement, Valens will sell Supra, which holds a Dealer’s License under the Narcotics Control Regulations, to RotoGro for total consideration of $11,000,000. Prior to closing the transaction, the Company will transfer all assets currently held in Supra, excluding the Dealer’s License, to the newly created subsidiary Valens Labs Ltd. The purchase price will be paid at four milestones and will be comprised of $2,000,000 in cash, and 18,900,000 shares of RotoGro with a current estimated value of $9,000,000.
“RotoGro is very excited to have the opportunity to fast track its entry into the Canadian cannabis market with the acquisition of an existing Dealers License from Valens GroWorks,” says RotoGro International Limited Managing Director Michael Carli. “We were very fortunate for Valens multi-license position with Health Canada and look forward to collaborating with them as we enter the Canadian market with our Ontario-based operations.”
With the sale of Supra, the Company’s strategic focus remains unchanged as it retains licenses from Health Canada that permit cultivation, processing cannabis oil, as well as analytical testing of cannabis.
Launch of Valens Labs Ltd.
The Company is also pleased to announce that it has incorporated Valens Labs Ltd., which will continue to operate its analytical laboratory testing operations, with all the same employees and laboratory assets that were previously held by Supra. Through the launch of Valens Labs, the Company will maintain its accreditation as an ISO 17025 lab for the testing of cannabis, and a “Centre of Excellence for Plant Based Science” with Thermo Fisher Scientific.
“We are very excited to launch the rebrand of the analytical testing component of our business as Valens Labs” says Valens Groworks CEO, Tyler Robson. “Having brand alignment while maintaining the ISO 17025 accreditation and Center of Excellence for Plant Based Science, we are strategically positioned to capitalize on growth opportunities in the industry.”
Roto-Gro International Limited is an Australian-based company with licensed, proprietary, patented, and patents-pending technology in the stackable rotary hydroponic garden space. RotoGro holds worldwide exclusive licenses for lawful medicinal and recreational cannabis markets and has agreed, subject to shareholder approval, to acquire the technology for all other purposes including pharmaceuticals, nutraceuticals and perishable foods. RotoGro’s wholly-owned subsidiary, Global Fertigation Solutions Inc. (“GFS”), provides a patent-pending specialized business line for water treatment and nutrient management in the viticulture, perishable foods and lawful cannabis space. GFS has successfully provided design solutions, installations and ongoing service contracts for more than twelve (12) licensed lawful cannabis facilities and is embarking on expanding this offering globally. The Company continues its focus on expanding into industry synergistic opportunities; exploring strategic partnerships and complimentary acquisitions in related markets which include, lawful cannabis license ownership, growing management services, industry leading nutrients, emerging tissue culture expertise and other supporting faculties of hydroponic growing.
About Valens GroWorks
Valens GroWorks Corp. is a vertically integrated provider of Canadian cannabis products developed from our proprietary extraction techniques, with three wholly-owned subsidiaries located in and around Kelowna, BC. Subsidiary Valens Agritech (“VAL”) holds a license to cultivate and produce oil as a Licensed Producer (“LP”) under the ACMPR, and a Dealer’s License under Health Canada. VAL also has a supply agreement with Canopy Growth Corporation under their extensive CraftGrow distribution network. Subsidiary Valens Labs Ltd. is an ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant Based Medicine Analytics. Subsidiary Valens Farms is in the process of becoming a purpose-built facility in compliance with European Union (EU) Good Manufacturing Practices (GMP) standards, ensuring the product from this facility can be exported anywhere in the world where Cannabis is nationally legal for medical or adult usage purposes. For more information, please visit http://valensgroworks.com. The Company’s investor deck can be found specifically at http://valensgroworks.com/investors/
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One major cannabis analyst gave her top stock pick this week as industry attention continues to converge on the path ahead for the US market.
Also this week, the CEO of Aphria (NASDAQ:APHA,TSX:APHA) gave an update on a critical merger and spoke about who holds the edge in the US in terms of American and Canadian cannabis operators.
Keep reading to find out more cannabis highlights from the past five days.
Analyst gives top pick as US market gains momentum
“We think that Green Thumb has a really nice geographic mix and an attractive profitability margin,” Azer said, while also crediting Green Thumb with holding a license in New York, a market that is soon set to legalize recreational cannabis.
In the past, Azer has called for the cannabis industry to be worth US$40 billion.
When asked about the potential for legalization in the US, Azer pumped the breaks on any kind of sweeping policy taking over in the near future.
“We’re not calling for (legalization) in the 117th Congress, but we do think there is an opportunity to find bipartisan support for some improvement in the federal landscape,” she said.
Azer believes this type of policy change would allow cannabis companies in the US to obtain commercial banking and insurance services, and for these firms to secure listings on US-based senior exchanges.
Aphria CEO gives Tilray merger update
Aphria CEO Iriwn Simon went on CNBC’s Squawk on the Street show during 420 on Tuesday (April 20) to discuss all aspects of the cannabis business.
When asked about the recent voting delay from Tilray (NASDAQ:TLRY) shareholders, who need to make a decision on the company’s proposed merger with Aphria, the executive pushed back on the idea that the move is punt by investors, instead suggesting it is a necessary motivational manoeuver.
“Today with retail shareholders out there and apathy in voting it’s going to take a little longer in regards to getting the vote done,” said Simon. “We will get the vote done, I’m very confident of that.”
Simon also pushed back against the idea that US-based multi-state operators have the advantage over Canadian producers when it comes to US market domination.
“When legalization does happen, the new Tilray will be ready to make a major entry into the US markets,” Simon told the Squawk on the Street audience.
While the US doesn’t have a federal legalization framework in place, multi-state operators have been able to capture market share by going after states with cannabis programs that allow for the sale of medical or even recreational products.
Cannabis company news
- Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT) issued an update to investors, confirming its business transition into an integrated consumer packaged goods company with plans for new CBD product development for the US market. “Neptune’s future will be focused on brand creation, accelerated organic growth complemented by new acquisitions with operational excellence as our foundation,” the company said.
- TerrAscend (CSE:TER,OTCQX:TRSSF) confirmed an acquisition deal for three dispensaries in Pennsylvania at a value of US$70 million. Jason Wild, executive chairman of the firm, identified Pennsylvania as a “key focus” for TerrAscend.
- Charlotte’s Web Holdings (TSX:CWEB,OTCQX:CWBHF) obtained Health Canada approval to use its proprietary hemp cultivars for outdoor cultivation. This move will help make Charlotte’s Web products more readily available in Canada.
- Bhang (CSE:BHNG,OTCQX:BHNGF) announced a delay in its financial report for the year ended December 31, 2020. The delay is being caused by the illness of an auditor, and the company now expects to file its report by the end of May.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”) will hold its 2021 First Quarter Earnings Conference Call on Friday, May 7, 2021 at 8:30 a.m. EDT. Cronos Group’s senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks.
A live audio webcast of the earnings call will be available on the Company’s website at https://ir.thecronosgroup.com/events-presentations . The webcast of the call will be archived for replay on the Company’s website.
Participants may also listen via telephone by dialing (866) 795-2258 toll-free from the U.S. and Canada, or (409) 937-8902 if dialing from outside the U.S. and Canada (conference ID: 3586688). If joining by phone, please dial into the call 15 to 20 minutes prior to the start of the conference call to avoid any long hold times.
About Cronos Group Inc.
Cronos Group is an innovative global cannabinoid company with international production and distribution across five continents. Cronos Group is committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos Group is building an iconic brand portfolio. Cronos Group’s portfolio includes PEACE NATURALS ™, a global wellness platform, two adult-use brands, COVE ™ and Spinach ™, and three hemp-derived CBD brands, Lord Jones ™, Happy Dance ™ and PEACE+ ™. For more information about Cronos Group and its brands, please visit: www.thecronosgroup.com .
This press release may contain information that may constitute “forward‐looking information” or “forward‐looking statements” within the meaning of applicable Canadian and U.S. securities laws (collectively, “Forward-looking Statements”). All information contained herein that is not clearly historical in nature may constitute Forward‐looking Statements. In some cases, Forward‐looking Statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, “potential”, “estimate”, “believe” or the negative of these terms, or other similar expressions intended to identify Forward‐looking Statements. Some of the Forward-looking Statements contained in this press release include the Company’s intention to build an international iconic brand portfolio and develop disruptive intellectual property. Forward‐looking Statements are not guarantees of future performance and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, results, performance or achievements expressed or implied by those Forward‐looking Statements. A discussion of some of the material risks applicable to the Company can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, which has been filed on SEDAR and EDGAR and can be accessed at www.sedar.com and www.sec.gov/edgar , respectively. Any Forward‐looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos Group disclaims any obligation to update or revise any Forward‐ looking Statement. Readers are cautioned not to put undue reliance on any Forward‐looking Statement.
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A report just released in early April confirms that the cannabis beverage sector is thriving. According to this report from industry stalwart, Marijuana Business Daily while sales for vapes, pre-rolls and flower were lackluster, cannabis beverages shined:
“The beverage category continued to shine in the first quarter, leading all categories with sales growing 68.4% over the same period last year and 14.2% versus the fourth quarter of 2020. Most beverage categories experienced double-digit growth going into 2021.”
That’s a staggering increase. And from the looks of the numbers, it’s a trend, not a fad. Cannabis beverages are becoming an option for consumers as more and more hit shelves and brands get smarter about dosing, flavors, and what customers want. With the summer months fast approaching, sales have been picking up in key markets.
It’s a good time to be a health and wellness company, and the cannabis beverage space as the category leads the industry in growth. There are only a few companies leading the industry, including HEXO Cannabis Canopy Growth Corp, Keef Beverages (Private). BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) has been making significant progress recently, and is now run by former Pepsi Co. executive, Melise Panetta, a veteran CPG and Cannabis executive with years of expertise selling and marketing some of the world’s most recognized beverage brands. It also added two veteran CPG (Consumer Packaged Goods) senior sales leaders to the organization.
BevCanna not only owns their own water source, a pristine alkaline spring water aquifer in British Columbia, but a world–class 40,000–square–foot, HACCP certified manufacturing facility which has a bottling capacity to produce up to 200M bottles annually. BevCanna’s extensive distribution network includes more than 3,000 points of retail distribution through its market-leading TRACE brand in Canada, a growing natural health and wellness e-commerce platform, Pure Therapy , its fully licensed Canadian cannabis manufacturing plant and distribution network, and a partnership with #1 U.S. cannabis beverage company Keef Brands .
Growing product line, world class leadership, and a growing sales team with experience, BevCanna is positioned to capitalize on the growing demand of Cannabis 3.0 beverages, and it’s looking to capture a piece of the market, which appears to be one of the hottest right now in the ever expanding cannabis industry.
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BevCanna Enterprises (CSE:BEV,OTCQQ:BVNNF,FWB:7BC) CEO Marcello Leone shared how the company is scaling up its products to forge partnerships and explore opportunities across Canada, the US and Western Europe.
“Getting your standard processing license and being fully compliant at a federal level is critical in Canada, and we were successful in getting that done. Now we’re getting ready to launch our Keef line of beverages within the next 45 days,” Leone said.
As a young company, Leone said BevCanna has only started, but it took a four-pronged approach to make sure that it is a revenue-generating company prepared for the opening of many jurisdictions for CBD-based products.
“We are blessed that we have a beautiful infrastructure of our own, a state-of-the-art bottling facility with a capacity of almost 200 million bottles per annum and a strong balance sheet of $55 million. We are in a strong position to scale and grow this company.”
BevCanna has received a Standard Processing License from Health Canada and is now fully authorized to begin production at its full-service, high-capacity beverage manufacturing facility. The company will begin production of its white-label products, number one US cannabis beverage brand Keef and its in-house beverages through licensed Canadian retailers, positioning the company to fully capitalize on the burgeoning Canadian cannabis-infused beverage sector.
Watch the full interview with CEO Marcello Leone above.
This interview is sponsored by BevCanna Enterprises (CSE:BEV,OTCQB:BVNNF,FWB:7BC). This interview provides information which was sourced by the Investing News Network (INN) and approved by BevCanna Enterprises in order to help investors learn more about the company. BevCanna Enterprises is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with BevCanna Enterprises and seek advice from a qualified investment advisor.
BioHarvest Sciences (CSE: BHSC) will be presenting at the Benzinga Cleantech Small Cap Conference taking place on April 22, 2021. We invite our shareholders and all interested parties to explore cleantech small cap investment opportunities through two days of networking, dealmaking and discovery.
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