The Valens Company (TSX: VLNS) is evidently focused on becoming a dominant player within the Canadian cannabis industry. Just a day after announcing the planned acquisition of Citizen Stash (TSXV: CSC), the firm has announced that has completed the acquisition of Verse Cannabis.
Focused on the value segment, Verse reportedly has a wide ranging portfolio of products within the major categories in the sector, hosting over 90 provincial product listings. The purchase reportedly puts Valens as a top tier producer based on provincial listings and market share, however hard figures for these claims were not provided.
In similar fashion, Valens has indicated that the transaction is expected to be accretive in 2021 “before synergies.” However, no price point was provided for the acquisition. The company has previously white-labeled certain products for the brand however, with the acquisition now enabling Valens to recognize the full revenue from provincial sales of the branded products.
The acquisition of Verse, together with that of Citizen Stash, is said to provide the company with assets that will “prove valuable upon entrance into the US THC market upon federal legalization.”
The Valens Company last traded at $3.02 on the TSX.
Information for this briefing was found via Sedar and The Valens Company. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
