The Valens Company Looks To Cut Up To $20 Million In Costs By Year End

The Valens Company (TSX: VLNS) this morning it is entering the “next phases of its Launch, Grow, Optimize” strategy. In short, the company is now looking to cut excess costs following a series of acquisitions conducted throughout the last year.

The company is looking to reduce its operational and organizational costs following the M&A conducted last year, which in corporate-speak means they are looking to realize “M&A-related synergies.” The company has reportedly found $10 million in annual cost savings that can be made, with a further $10 million expected to be found in the future.

Impacts from such synergies are expected to be seen in the second quarter of 2022, while the largest impact is slated to hit in the second half of the year. The firm is currently in the process of removing overlapping processes across its subsidiaries, and cutting out underperforming products from its portfolio. The firm is also in the process of automating certain production processes, while looking to utilize contract growers to reduce costs as well.

Valens also indicated it is looking to sell off surplus or unneeded assets, which is to result in proceeds to the company of between $5.0 million and $10.0 million.

The Valens Company last traded at $2.51 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. 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.

Video Articles

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

They Laughed at $3,000 Gold, Now We’re Headed for $4,000! | Sean Roosen – Osisko Development Corp.

Recommended

Steadright Begins Preliminary Economic Assessment On TitanBeach Project

Three Miners Trapped Underground At Newmont’s Red Chris Mine

Related News

Valens: Canaccord Cuts Price Target To $4.00 Due To Tapered Growth

On July 13, The Valens Company Inc. (TSX: VLNS) reported its second quarter financial results...

Tuesday, July 19, 2022, 04:56:00 PM

Sundial Growers Retakes 10% Ownership In Valens Company

Sundial Growers (NASDAQ: SNDL) evidently remains bullish on The Valens Company (TSX: VLNS). The firm,...

Tuesday, September 21, 2021, 08:45:11 AM

Valens Company Receives License Amendment To Sell Dried Cannabis Products

Whereas most cannabis-related firms appear to be moving away from dried flower products, The Valens...

Friday, February 12, 2021, 07:15:17 AM

Valens Company: Canaccord Warns Of Integration Risk Following Acquisitions

This week has been a busy one for The Valens Company (TSX: VLNS). On Tuesday,...

Friday, September 3, 2021, 03:40:00 PM

Valens Company Applies For Nasdaq Listing, Looks To Consolidate Shares

The Valens Company (TSX: VLNS) appears to be in search of additional liquidity. The company...

Wednesday, April 28, 2021, 07:35:09 AM