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Valens Expands In Edibles Market, Closes Acquisition Of LYF Food Technologies

March 5, 2021 8:49 am
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Valens Expands In Edibles Market, Closes Acquisition Of LYF Food Technologies

Valens Company Inc. (TSX:VLNS) (OTCQX:VLNCF) has acquired Canadian edibles manufacturer LYF Food Technologies Inc.

The Kelowna, British Columbia-based company has finalized the previously announced cash and share transaction worth CA$24.9 million ($19.68 million).

The price tag included an additional CA$17.5 million ($13.8 million) payable upon reaching particular EBITDA milestones.

The company said it intends to manufacture a plethora of edible products in various formats and dosages, integrating them into its central platform.

Valens appointed several experts from the confectionary, commercial-scale food manufacturing, and cannabis industries as well, as a part of its strategy to boost its footprint within the edibles space.

Valens co-founder and CEO Tyler Robson noted they are "incredibly excited to officially welcome LYF to the Valens family."

Over the first three months of 2021, Valens and LYF introduced edibles products under collaborations with A1 Cannabis Co. and Verse Cannabis, their shared partners.

LYF and A1 Cannabis teamed up to introduce Summit Wild Berry Soft Chews, containing 5mg of THC per soft chew.

The partnership between Valens and Verse Cannabis yielded Verse Soft Chews, including Verse Baked Apple Soft Chews and Verse Sour Medley Soft Chews, each with roughly 2mg of THC.

"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," Robson explained.

Valens will distribute its edibles products to provincial retailers in the weeks to come.