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The rebranded Valens Company (formerly Valens GroWorks Corp.) which is trading on the TSX effective today, has reported its Q1 financial results (the period ended February 29, 2020) with mixed results, as follows:
Financial Highlights (presented in thousands of Canadian dollars, except per share amount, and in comparison to the previous Q4 quarter)
- Revenue: +4.4%
- Gross Profit ($): -19.5%
- Gross Profit as a % of Revenue: 56.6% vs. 73.8% in Q4
- Adj. EBITDA ($): -19.2%
- Adj. EBITDA as a % of Revenue: 44.7% vs. 57.7% in Q4
- Net Income ($): -24.2%
- Net Income as a % of Revenue: 14.6% vs. 35.8% in Q4
- Income/Share: $0.02 vs. $0.04 in Q4
- Cash/Cash Equiv.: - 26.6% to $44.3M
- Net Working Capital: $80.4M
Operational Highlights
- increased revenue/gram by 15.2%
- developing 25 SKUs across 5 different product lines
- announced a 4-year extraction & white label agreement with Emerald Health Therapeutics Inc.
- entered into an amended manufacturing & sales licencing agreement with SōRSE Technology Corporation to use their proprietary emulsion technology in the production of Valens' cannabis-infused products
- launched a line of cannabis-infused beverages, subsequent to the end of Q1, which is being produced under a white label agreement with a subsidiary of Iconic Brewing
Corporate Highlights
- rebranded itself to "The Valens Company" to better reflect the strategic vision of its business.
- changed its ticker symbol on the OTCQX to 'VLNCF'
- uplisted to the TSX, effective today, April 16th, under the trading symbol 'VLNS'
Stock Performance
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