The Valens Company (TSX:VLNS, OTCQX:VLNCF) said it has received a sales licence amendment from Health Canada for its Pommies manufacturing facility located in the Greater Toronto Area (GTA) to sell micro-processed cannabis products directly to provincial distributors.
Prior to this announcement, Valens leveraged its British Columbia sales licence to sell into the provincial distributors which created additional cost and complexity in our supply chain. With the amendment now in place, products produced at its GTA facility will benefit from a streamlined, direct route to market that the company believes will increase margins and overall company efficiencies.
"Since the opening of our facility in November 2021 we have already seen an increase in our beverage margins," said Tyler Robson, chief executive officer of Valens in a statement.
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"This amendment will further increase our flexibility and logistical efficiencies to focus on further margin growth especially with elevated shipping costs throughout Canada. As we have launched more branded products, we have seen our cannabis beverage market share increase from 5.5% in Q1 2021 to 9.0% in Q3 2022 in Alberta, British Columbia, Ontario and Saskatchewan. With this amendment behind us, we look forward to launching more innovative products to keep up with growing consumer demand within the category," he added.
The Valens Company is a leading cannabis consumer products company, with significant expertise in manufacturing cannabinoid-based products and a mission to bring the benefits of cannabis to the world. Valens provides proprietary cannabis processing services and best-in-class product development, manufacturing, and commercialization of cannabis consumer packaged goods.
Valens' high-quality products are formulated for the recreational, health and wellness, and medical consumer segments and are offered across all cannabis product categories, with a focus on quality and product innovation. Valens also manufactures, distributes, and sells a wide range of CBD products in the United States through its subsidiary Green Roads, and distributes medicinal cannabis products to international markets through its subsidiary Valens Australia.
In partnership with brand houses, consumer packaged goods companies and licensed cannabis producers around the globe, Valens continues to grow its diverse product portfolio in alignment with evolving cannabis consumer preferences. Through Valens Labs, Valens is setting the standard in cannabis testing and research and development with Canada's only ISO17025 accredited analytical services lab, named The Centre of Excellence in Plant-Based Science by partner and scientific world leader Thermo Fisher Scientific.
Contact the author at jon.hopkins@proactiveinvestors.com