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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.