The Valens Company Inc., a manufacturer of cannabis products, is pleased to announce the closing of its previously announced acquisition of all of the issued and outstanding shares of LYF Food Technologies Inc. The cash and share transaction (“LYF Acquisition”) totaled CDN$24.9 million payable on closing, plus approximately CDN$17.5 million in post-closing consideration subject to achieving certain earn-out EBITDA milestones. With this acquisition of LYF, Valens has accelerated its footprint in the edibles category, which is one of the fastest-growing segments of the Cannabis 2.0 and 3.0 markets.
Tyler Robson, Chief Executive Officer, Co-Founder and Chair of The Valens Company, said: “We are incredibly excited to officially welcome LYF to the Valens family, which will undoubtedly strengthen our manufacturing leadership position given their confectionary expertise and broad network of partners and retailers. The closing of the LYF acquisition, and the addition of their leading edibles platform, signifies the completion of a key milestone in our strategy to drive SKU growth in new product categories and maximize market share gains across the country. We have already begun diversifying our product offering with the launch of various soft chews manufactured in LYF’s facility, and we have a strong pipeline of new innovative edible products we believe will increase both quality and variety in the existing edibles segment in Canada today.”
Paolo Pero and Matthew Amado, Co-Founders of LYF, said: “We are ready to hit the ground running with the Valens team as a unified manufacturing force in the Canadian recreational market. Our shared passion for putting consumers at the forefront of product development, formulation and commercialization will be demonstrated as we begin rolling out various edible products that the Canadian market has never seen before.”
With the addition of the LYF facility, the Company now has the capability to produce a wide range of edible products in various formats and dosages as part of its central platform. The added product development and manufacturing flexibility makes the platform easily adaptable to evolving consumer preferences and changing market regulations around edible products as Valens looks to expand both in Canada and globally. Additionally, Valens welcomes several new team members who have gained valuable experience working in the confectionary, commercial-scale food manufacturing and cannabis industries, and bring with them the knowledge to produce unique and expected higher-margin products such as honey, granola balls, baked goods, and various gourmet gummy and chocolate formats. Vegan, sugar-free and low-sugar formats are available and will be especially complementary to the development of Valens’ health and wellness product suite.
In the first quarter of 2021, Valens and LYF launched edible products with shared partners A1 Cannabis Co. (“A1 Cannabis”) and Verse Cannabis (“Verse”). In partnership with A1 Cannabis, LYF launched the Summit Wild Berry Soft Chews, made with real-fruit juice, no added colours or flavours and 5mg of THC per soft chew. Additionally, The Valens Company and Verse Cannabis launched Verse Soft Chews – a new line of edible formulations and unique flavors at a great value. The new product lineup includes Verse Baked Apple Soft Chews, infused with flavours of green apple and cinnamon offering a tart-meets-sweet flavour bite, and Verse Sour Medley Soft Chews, a variety pack of five sweet and sour flavours, including green apple, raspberry, watermelon, pineapple, and cherry. Each pouch contains five soft chews each with approximately 2mg of THC and formulated with Valens’ premium cannabis distillate. The Verse Baked Apple Soft Chews are now available in Alberta and are expected to be available shortly in British Columbia and Ontario, while the Verse Sour Medley Soft Chews will be available in the coming weeks in Alberta and British Columbia.
The Valens Company expects to ramp up shipments of edible products to provincial retailers in the coming weeks, including existing SKUs such as Citizen Stash Strawberry Mac gummies from LYF’s white label agreement with Experion Biotechnologies Inc. In the second quarter of fiscal 2021, the Company intends to launch an assortment of unique, consumer-driven edible products into the market.
The Valens Company is a leading manufacturer of cannabis derivative products with a mission to bring the benefits of cannabis to the world. The Company provides proprietary cannabis processing services across five core technologies, in addition to best-in-class product development, formulation and manufacturing of cannabis consumer packaged goods. Discover more on The Valens Company and its subsidiaries at http://www.thevalenscompany.com.