The Valens Company (TSX:VLNS, OTCQX:VLNCF) Inc, a leading cannabis manufacturer has completed the acquisition of Verse Cannabis, a Canadian cannabis retailer.
The deal will also see Valens take ownership of all of the Verse intellectual property.
This latest deal comes on the heels of another acquisition. On August 31, the company announced it was purchasing Citizen Stash Cannabis Corp, a Canadian premium craft cannabis company, in an all-stock transaction valued at about C$54.3 million on an enterprise value basis.
Valens plans to use both deals to solidify its position as a top-tier cannabis licensed producer in the Canadian industry by total provincial listings and market share.
READ: The Valens Company to buy premium craft cannabis company Citizen Stash for C$54.3M in stock
Verse initially hit the market in August 2020 and has since emerged as a leading cannabis brand with a wide-ranging portfolio that spans all major product categories.
As noted in the statement: “Verse has been a pioneer in the value segment starting with its Tropic Lemon 510 thread vape cartridges (including one of the first 1.0g cartridges on the market) and continuing with the recent launch of BC God Bud 28g offering. Today, Verse boasts a number of innovative products in its portfolio such as the Sour Medley and Baked Apple Soft Chews, Double Chocolate Brownie, THC and CBD SoRSE-based drops and the Rapid Tropical Rush beverage to name a few.”
Verse products are carried in 90 provincial listings across seven Canadian provinces and territories.
“The acquisitions of Verse and Citizen Stash were motivated by an underlying desire to become an ally to both our customers and consumers. We believe in creating best-in-class products that consumers deserve in the right way, without ever cutting corners,” Tyler Robson, Chief Executive Officer and Chair of the Board at The Valens Company (TSX:VLNS, OTCQX:VLNCF), said in the press statement.
He continued: “Whether it's medical or recreational, local or international, third-party owned brands or Valens owned brands, we're pursuing purity in extraction, formulation, product development and testing to bring the benefits of cannabis to the world. The expanded platform we have built at Valens is now positioned to better serve current and future customers and consumers through unique product offerings at attractive price points while maximizing shareholder value through Valens branded products."
Some of the strategic highlights from both deals include the positioning of The Valens Company (TSX:VLNS, OTCQX:VLNCF) to drive market share gains, close the existing valuation gap with large, licensed producer peers, and maximize value for all its shareholders.
The company will also be able to expand its manufactured product portfolio with a strong pipeline ripe for expansion. Having worked with Verse from the beginning, Valens has intimate knowledge of the brand identity and helped foster its success in the marketplace.
Lastly, the Canadian cannabis manufacturer plans to leverage the larger portfolio of brands and IP for entrance into the US THC market upon federal legalization.
Contact the writer at georgia@proactiveinvestors.com
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