The Valens Company (TSX: VLNS) has officially closed the acquisition of LYF Food Technologies. The arrangement saw the extraction focused firm acquire the edibles producer for total consideration of $24.9 million, before additional earn-out provisions are considered.
The acquisition was justified by the firm refocusing its operation to that of a “cannabis consumer packaged goods platform.” The purchase of LYF effectively accelerated Valens’ push into the edibles market, with the firm already launching several soft chew products.
Products were launched ahead of the closing of the arrangement, with edibles being manufactured for both A1 Cannabis Co and Verse Cannabis. Each client saw multiple product SKU’s developed and launched under new product lines, with distribution now already underway. Further products are to be launched under the second quarter with additional partners.
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The company was acquired for $24.9 million in cash and shares, payable on closing, while earn-out provisions of up to $17.5 million are also in place, subject to certain EBITDA milestones.
The Valens Company last traded at $1.71 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.
