- Valens announces Q4 2019 revenue guidance of $27 million - $30
million, a near doubling of Q3 2019 reported revenue and
resulting in estimated 2019 annual revenue of $55 million - $58
million
- Significant increase in Valens' white label product output
and "Cannabis 2.0" product-focused distillate sales resulting in a
significant rise in dollar per gram of input in comparison to Q3
2019
- Intension to commence a Normal Course Issuer Bid ("NCIB"),
from time to time, with a view to maximizing shareholder
value
KELOWNA, BC, Dec. 16, 2019 /CNW/ - Valens GroWorks
Corp. (TSXV: VGW) (OTCQX: VGWCF) (the "Company" or
"Valens"), a cannabinoid-based product company with industry
leading extraction, next generation cannabinoid delivery formats
and an ISO 17025 accredited analytical lab, is pleased to announce
revenue guidance for the recently completed fourth quarter 2019 in
the range of $27 million to
$30 million as well as its intention
to commence a NCIB for the purchase and cancellation of up to
6,275,204 of its common shares (the "Shares") or 5% of the
issued and outstanding Shares as calculated on a non-diluted basis.
The NCIB will be funded with cash on hand and the Company's current
positive cash flow from operations.
Revenue Guidance for Fourth Quarter 2019
The Company is pleased to announce revenue guidance for the
recently completed fourth quarter of 2019 in the range of
$27 million – $30 million, a significant increase over its
third quarter 2019 revenue of $16.5
million.
The Company also expects to report that it has extracted over
24,400 kilograms of cannabis and hemp biomass in the fourth quarter
of 2019. This is roughly in-line with the amount of biomass
processed in Q3 2019 and reflects the anticipated shift in focus to
white label manufacturing and the demand from our customers to
launch a breadth of "Cannabis 2.0" products into the market. This
breadth of products translated into smaller lot sizes and resulted
in a temporary pause from the volume ramp seen in previous quarters
but also resulted in a significant increase in our revenue per gram
of input performance. Looking forward, Valens expects to see a
return to an aggressive volume growth through its facilities as
large amounts of hemp biomass are brought in from the fields and
customers require the large production runs that are typical in
such a fast-growing market.
"I couldn't be more thrilled to share revenue guidance for
Valens' fourth quarter, which I believe is only starting to show
the power of our platform," says Tyler
Robson, CEO of Valens. "The reason we have built five
different types of extraction in house is so that we can facilitate
being a one stop shop for our customers by having the means to
produce a large variety of next generation white label products.
This quarter shows the flexibility of our operations and represents
an inflection point in our acceleration into "Cannabis 2.0"
oil-based products. Through the incredible demand we are seeing, we
expect white label sales to continue to ramp up as we increase the
number of white label contracts and volume of the contracts
themselves."
Intention to Launch Normal Course Issuer Bid
The Company intends to launch a NCIB for the purchase and
cancellation of up to 6,275,204 Shares, representing approximately
5.0% of the issued and outstanding Shares, calculated on a
non-diluted basis. The NCIB is expected to run for a period
of one year from when it is formally commenced.
The Company believes that given its strong financial and
operational performance, prevailing market conditions and the price
performance of its Shares, the NCIB is a prudent and appropriate
approach to maximize shareholder value. Having a NCIB in place will
provide the Company with the flexibility to purchase Shares, from
time to time, at the Company's discretion, as part of its capital
management strategy, subject to applicable black-out periods and
trading restrictions. The NCIB will be funded with cash on hand and
the Company's current positive cash flow from operations.
The NCIB will be made in accordance with the applicable rules
and policies of the TSXV and applicable Canadian securities
laws. Under the NCIB, the Shares may be repurchased in open
market transactions on the TSXV and/or other Canadian exchanges, or
by such other means as may be permitted by the TSXV and applicable
Canadian securities laws.
The NCIB has been approved by the Company's board of directors
but remains subject to approval by the TSXV.
About Valens GroWorks
Valens GroWorks Corp. (TSXV:VGW) (OTCQX:VGWCF) is a
multi-licensed, vertically-integrated cannabis company focused on
being the partner of choice for leading Canadian and international
cannabis brands by providing best-in-class, proprietary services
including CO2, ethanol, hydrocarbon, solvent-less and terpene
extraction, analytical testing, formulation and white label product
development. Valens is the largest third-party extraction
Company in Canada with an annual
capacity of 425,000 kg of dried cannabis and hemp biomass at our
purpose-built facility in Kelowna,
British Columbia which is in the process of becoming
European Union (EU) Good Manufacturing Practices (GMP)
compliant. Additionally, our subsidiary Valens Labs is a Health Canada licensed ISO
17025 accredited cannabis testing lab providing sector-leading
analytical services and has partnered with Thermo Fisher Scientific
to develop a Centre of Excellence in Plant-Based Science. For
more information, please visit http://valensgroworks.com. The
Company's investor deck can be found specifically at
http://valensgroworks.com/investors/
Notice regarding Forward Looking Statements
This news release contains certain "forward-looking statements"
within the meaning of such statements under applicable securities
law. Forward-looking statements are frequently characterized by
words such as "anticipates", "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed", "positioned" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout
this news release. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The Corporation is under no obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law.
The TSXV or other regulatory authority has not reviewed,
approved or disapproved the contents of this press release. We seek
Safe Harbour.
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SOURCE Valens GroWorks Corp.