Kelowna cannabis company on buying spree

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Kelowna cannabis company Valens is on an acquisitions jag.

So far this year, the diversified cannabis products manufacturer has purchased LYF Food Technologies of Kelowna for CDN$24.9 million, Green Roads CBD of Florida for US$40 million, Citizen Stash of Mission, BC for CDN $54.3 million and Verse in an undisclosed private transaction. "These acquisitions fit our strategy of becoming an international leading cannabis company," said Valens president Jeff Fallows.

"It's also a way for us to bring Canadian quality to the world."

In the past, Valens has primarily been a contract manufacturer of cannabis oil-based products for other brands.

The purchase of Citizen Stash will allow Valens to get into the highly lucrative premium cannabis dried flower market.

"We'll keep the Citizen Stash name because it's well-known and well-respected," said Fallows.

"And we'll keep Citizen Stash's facility in Mission, BC as a research-and-development centre. It's a good acquisition because Citizen Stash uses craft contract growers for its flower, so it doesn't have the grow-op infrastructure cost itself."

Citizen Stash products also include pre-rolled joints and dried cannabis.

Valens will also keep the Verse name and make all of its brand-name products at Valens' main manufacturing facility on Carion Road in Kelowna.

"Verse is a value brand with high quality and a low price point in all market segments from flower and pre-roll (joints) to tinctures and edibles," said Fallows.

"It's nice to have control of the brand and use our facility to make and distribute the products."

LYF Food Technologies is a cannabis edibles company and Green Roads focuses on CBD (cannabidiol) therapeutic products that don't cause the high that THC (tetrahydrocannabinol) products do.

Valens stock trades on the TSX and coming soon, NASDAQ.

On Thursday, stock was trading at around $2.50.

Over the past year, it’s been as high (pardon the pun) as $4 and as low as $1.44.

Valens is a big contributor to the Okanagan's status as a cannabis hotspot.

The Valley has more than 30 cannabis stores and is a hub for production and distribution.

The Flowr Corp., has indoor and outdoor grow facilities and a research and development lab in Winfield; the Valley is also home to pot growers Doja, THC BioMed and SpeakEasy; cannabis oil extraction companies Everest BioPharma and MediPharm Labs; equipment manufacturer Vitalis Extraction Technology; and True Leaf, which uses CBD to make supplements, treats and oils for dogs and cats to boost immunity, ease hip and joint pain and reduce anxiety.

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