JANUARY 2021 TSX: VLNS OTCQX:VLNCF THEVALENSCOMPANY.COM - Proactive Investors
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JANUARY 2021
TS X : VLNS
OTCQX:VLNCF
THEVALENSCOMPANY.COM
NOTICE TO RECIPIENT
This presentation (the “Presentation”) of The Valens Company Inc. (the “Company” or “The Valens Company” or “Valens”) is an overview only
and does not contain all the information that a prospective investor may require to make investment decisions. This Presentation is for
information purposes only and does not constitute an offer to sell or a solicitation to buy any securities of the Company. In making an
investment decision, investors must rely on their own examination of the Company, including the merits and risks involved. This presentation
is confidential and contains confidential information and distribution of this presentation may also be restricted or prohibited by law.
Recipients are required to inform themselves of, and comply with, all such restrictions or prohibitions.
FORWARD LOOKING STATEMENTS
This Presentation contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within
the meaning of applicable Canadian securities laws. Any statements that involve
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often but not always using phrases such as "expects", "is expected", "anticipates",
"plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends", or variations of such words and phrases
(including negative and grammatical variations), or stating that certain actions, events or results "may", "could", "would", "should", "might"
or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements and are intended to
identify forward-looking statements.
By their nature, forward-looking statements are based on assumptions and are subject to known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the Company, or developments in the Company’s industry, to
be materially different from any future results, performance or achievements, or industry developments, expressed or implied by the
forward-looking statements and information. These risks are described in the Company’s latest Annual Information Form for the year ended
November 30, 2019 and Management’s Discussion and Analysis of the Company for the three and nine month period ended August 31, 2020
(the “MD&A”), each as filed with the Canadian securities regulatory authorities on SEDAR at www.sedar.com. Examples of forward-looking
statements include, without limitation: (A) financial forecasts of the Company; (B) the intention to grow the business and operations of the
Company; (C) anticipated timing for the availability of the Company’s products to market and expected sale prices; (D) expected growth in
the number of users of medical and recreational marijuana anticipated in various regional and international markets; and (E) the expansion
of the Company’s business into other revenue streams. Actual results and developments are likely to differ, and may differ materially, from
those expressed or implied by the forward-looking statements contained in this Presentation.
Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to:
expectations regarding the ability of the Company to raise capital and grow through acquisitions; growth strategy, joint venture and other
commercial opportunities, including cannabis-related legal reform and regulatory changes with respect to the U.S. and other international
markets, and the ability of the Company to capitalize on these opportunities through its stated work program; and expected sources and
uses of capital. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking
statements. The forward-looking statements and information contained in this Presentation are expressly qualified in their entirety by this
cautionary statement. The forward-looking statements and information included in this Presentation are made as of the date of this
Presentation and the Company assumes no obligation to update such forward-looking statements to reflect new information, subsequent
events or otherwise unless required by applicable securities legislation.
T S X : V L N S | O T C Q X : V L N C F 2
Historical statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such
trends or activities will continue in the future. In this regard, certain financial information contained herein has been extracted from, or
based upon, information available in the public domain and/or provided by the Company. In particular, historical results of the Company
should not be taken as a representation that such trends will be replicated in the future. No statement in this document is intended to be
nor may be construed as a profit forecast.
CAUTIONARY NOTE REGARDING FUTURE-ORIENTED FINANCIAL INFORMATION
To the extent any forward-looking statement in this Presentation constitutes “future-oriented financial information” or “financial outlooks”
within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market
penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place
undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial
outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to risks as set out
above under the heading “Forward-Looking Statements”. The Company’s actual financial position and results of operations may
differ materially from management’s current expectations and, as a result, the Company’s revenue and expenses may differ materially from
the revenue and expenses profiles provided in this presentation. Such information is presented for illustrative purposes only and may not be
an indication of the Company’s actual financial position or results of operations.
THIRD PARTY INFORMATION
This Presentation includes market and industry data which was obtained from various publicly available third-party sources. In preparing
this Presentation, the Company has relied upon such data from certain of these sources and other sources believed by the Company to be
true. Although the Company believes it to be reliable, the Company has not independently verified any of the data or conclusions from
third-party sources referred to in this presentation, or analyzed or verified the underlying reports relied upon or referred to by such sources,
or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation or warranty as to
the accuracy or completeness, or suitability for any given analytical purpose, of such data or conclusions and disclaims any liability to
the recipient from the recipient’s use of any such report or source, or the data or conclusions therein, including those reproduced herein.
USE OF NON-GAAP MEASURES
Adjusted EBITDA is a non-GAAP measure used by management that does not have any standardized meaning prescribed by IFRS and may
not be comparable to similar measures presented by other companies. Management defines adjusted EBITDA as loss and comprehensive
loss from operations, as reported, before interest, tax, depreciation and amortization, and adjusted for removing share-based payments,
unrealized gains and losses from short term investments and other one-time and non-cash items including impairment losses.
Management believes adjusted EBITDA is a useful financial metric to assess its operating performance on an adjusted basis as described
above. A description of these financial measures, including a reconciliation of such measures, to the extent possible, against the most
directly comparable IFRS measure, can be found starting on page 12 of the MD&A.
T S X : V L N S | O T C Q X : V L N C F 3
OUR MISSION
IS TO BRING THE BENEFITS
OF CANNABIS TO THE
WORLD.
RECENT ANNOUNCEMENTS
• Acquisition of leading Canadian edibles
manufacturer, LYF Food Technologies Inc.
• CDN$35 million bought deal offering and
filing of preliminary base shelf prospectus
T S X : V L N S | O T C Q X : V L N C F 4
BES T PO S ITION ED TODAY,
ACCE LERATIN G IN TO TOM ORROW
CANNABIS PROCESSING AND NEXT GENERATION PRODUCT CAPABILITIES DRIVE OUR ADVANTAGE
BECOMING A GLOBAL ONE-STOP SHOP PREPARING FOR THE GROWING MARKET
Providing a full suite of manufacturing Increasing and improving custom manufacturing
capabilities with the ultimate ability to distribute capabilities to keep up with expected demand for
products globally to adapt to evolving consumer cannabis derivative products
and customer demand
BUILDING REPUTATION
OPERATING WITH GLOBAL STANDARDS Gaining more partnerships and establishing The
Readying our business model for exportation to Valens Company as the trusted partner of choice
high value international markets by various leading international brands and
Consumer Packaged Goods (CPG) companies
PROVIDING UNIQUE, CUSTOMIZED
OFFERINGS
Further developing our unique, IP-based product
technology platform offering customized
manufacturing services
T S X : V L N S | O T C Q X : V L N C F 5
OU R BELIEF
THE MARKET WILL BE DOMINATED BY OIL-BASED PRODUCTS
25%
35% 65% 49% 51%
75%
2017 2019 FUTURE*
OTHER
PRE-ROLLS
CONCENTRATES
6% 9%
9%
OIL-BASED EDIBLES
PRODUCTS 11%
Source: Cowen and
FLOWER Company, cannabis
42% equity research report
FLOWER- BASED dated February 24, 2020
PRODUCTS (US Market Share).
*Valens’ forward-looking
23% prediction in the short-
VAPE PENS term based on market
research
T S X : V L N S | O T C Q X : V L N C F 6
THE VA LEN S A DVAN TAGE
LEADING THE CANADIAN CANNABIS 2.0 MARKET WITH A FULL SUITE OF MANUFACTURING CAPABILITIES
CAPSULES TINCTURES VAPES BEVERAGES CONCENTRATES EDIBLES TOPICALS
COMING
SOON
*Sourced from company presentations, websites and news releases. As at January 22, 2020.
T S X : V L N S | O T C Q X : V L N C F 7
GRO WIN G RETAIL M ARKET
INCREASED OPPORTUNITY FOR 2.0-FOCUSED COMPANIES LIKE THE VALENS COMPANY
Flower-based and Oil-based Product Sales in AB, BC and
Canadian Annualized Retail Sales (C$,B)
ON (C$,M)
$3.50B $180M
$3.2B* Post 2.0
$3.00B $160M
$140M
$2.50B
$120M
$2.00B Pre 2.0
$100M
$1.50B $80M
$60M
$1.00B
$40M
$0.50B
$20M
$0.00B $0M
Mar-20
Jul-20
Nov-20
Oct-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Apr-20
May-20
Jun-20
Aug-20
Sep-20
Oct-20
Nov-18
May-19
Oct-19
Dec-19
Jan-20
Mar-20
May-20
Jun-20
Jul-20
Oct-20
Nov-20
Aug-19
Sep-19
Nov-19
Feb-20
Apr-20
Aug-20
Sep-20
Flower-based Products Oil-based Products
9 +1K $3.2B*
Product Segments Retail Stores Annualized Revenue
Source: Statistics Canada, Headset
*Annualized sales based on daily retail sales data in September from Statistics Canada.
T S X : V L N S | O T C Q X : V L N C F 8
PROJE CTED CAN ADIA N RETAIL CAN N ABIS
M ARKET OP PO RTU N ITY
CANADA COULD BE AT $10B+ IN SALES IN 2024 BASED ON COLORADO’S GROWTH TRAJECTORY
OIL-BASED
PRODUCTS
~$2.5B
~$5.0B POTENTIAL SIZE OF
OIL-BASED WHOLESALE
MARKET UP FOR GRABS
BETWEEN LPS AND
MANUFACTURERS*
$10B+
2024* POTENTIAL IMPLIED
REVENUE
MARKET SHARE OPPORTUNITY
~$5.0B 10% $250MM
20% $500MM
FLOWER- BASED 30% $750MM
PRODUCTS
*C$,B. Used only for illustrative purposes, implies conservative wholesale retail markup of 100% for retailers
Source: Cantor Fitzgerald, Projecting Canada based on the Colorado trajectory, consumer/cannabis equity research report dated June 21, 2020.
T S X : V L N S | O T C Q X : V L N C F 9
VA LEN S IN THE VALU E CHAIN
UNLOCKING HIGHER MARGINS FOR OUR CUSTOMERS
VALENS’ OPERATIONS PRODUCT BRANDING RETAIL
MANUFACTURING & SALES
FORMULATION
PURIFICATION
OUR FOCUS
PROVIDE QUALITY PRODUCTS THAT
OFFER CUSTOMIZED USER EXPERIENCES
TO HELP OUR CUSTOMERS BUILD
DIFFERENTIATED, HIGH VALUE BRANDS
CULTIVATION EXTRACTION
T S X : V L N S | O T C Q X : V L N C F 10EX TRACTION
CONCEPT IS SIMPLE, QUALITY EXECUTION IS COMPLEX
DRIED
CANNABIS CRUDE OIL OIL REFINEMENT CHROMATOGRAPHY/
OR HEMP OIL (DISTILLATE) SEPARATION
WINTERIZATION (ISOLATE)
OIL
EXTRACTION
T S X : V L N S | O T C Q X : V L N C F 11EX PE RTIS E THAT DIFFEREN TIATES
DIVERSITY CREATES COMPETITIVE ADVANTAGE
LESS COMMODITIZATION
SUPER/SUB SOLVENT-LESS ETHANOL HYDROCARBON TERPENE
CRITICAL CO2
Capsules, Tinctures, Rosin, Hash, Full Capsules, Tinctures, Concentrates, Vapes, Add back for
Vapes, Topicals, Spectrum Vapes, Topicals, Shatter/Wax, experience, flavour
Beverages, Edibles Beverages, Edibles Crumble/Live Resin, and smell
and Full Spectrum and Others Full Spectrum
ONE SIZE DOES NOT FIT ALL: HIGH QUALITY PRODUCTS NEED CUSTOMIZED PROCESSES
T S X : V L N S | O T C Q X : V L N C F 12BU S IN E S S S TRATEGY
DELIVERING SUSTAINABLY STRONG EBITDA MARGINS THROUGH THE CYCLE
PHASE 1 EXTRACTION
High margin and low ris k entry int o market
$ through acc elerat ed s cale-up
PHASE 2 CUSTOM MANUFACTURING
Utilize t ec hnical expertis e to develop unique
$$ product port folio and maximize margins
PHASE 3 GLOBAL CUSTOM MANUFACTURING
Generate global revenue and high margins in large
$$$ markets by leveraging experienc e and bes t pract ices
T S X : V L N S | O T C Q X : V L N C F 13EX TRACTION E X P ERTIS E FACILITATES
RO LL-OU T OF B ES PO KE M AN U FACTU RIN G
A ONE-STOP-SHOP FOR LEADING LPS, BRAND HOUSES AND CPG COMPANIES
EXTRACTION EXTRACTION & WHITE LABEL & CUSTOM MANUFACTURING
MANUFACTURING
+
OTHERS
HIGH QUALITY EXTRACTION NEXT GENERATION PRODUCT DEVELOPMENT
*Slide represents both past and present customers of The Valens Company but is not inclusive of all
customers that the Company does business with on an ongoing basis.
T S X : V L N S | O T C Q X : V L N C F 14VA LEN S IP
CUSTOMIZED USER EXPERIENCES NEED CUSTOMIZED PRODUCT FORMULATIONS
VALENS I S BUILDING A D I VE RS E IP
PORTFOLIO T H A T SPANS ACROSS A L L
T Y P E S OF PRODUCTS AND SERVICES
CANNABINOID AND
TERPENE ISOLATION
S ōR S E B Y V A L E N S
EMULSION AND
CANNABINOID DELIVERY
C O N C E N T R AT E S
F O R M U L AT I O N S
EXTRACTION C U R R ENT
METHODOLOGIES V A L E NS ’
B E V E RA GE
S O L UT I O N
P R O BL E MS
TESTING
METHODOLOGIES
T S X : V L N S | O T C Q X : V L N C F 15THIRD-PARTY PRODU CT DEV ELO PM EN T
AN D M AN U FACTU RIN G
THE FUTURE OF CANNABIS CONSUMPTION
VALENS 1.0 VALENS 2.0
CURRENTLY MANUFACTURING PHASE I PHASE II
CURRENTLY MANUFACTURING 2021
Beverages Edibles
Q1 2021
Tinctures Two-piece caps
Concentrates Topicals
Q2 2021
Soft gels Oral spray Vape pens and + More innovative products
cartridges
T S X : V L N S | O T C Q X : V L N C F 16THE VA LEN S CO M PAN Y + LYF
CREATING A LEADING CANNABIS CONSUMER PACKAGED GOODS PLATFORM IN CANADA
EXPERIENCED ACCRETIVE
TEAM ACQUISITION
Expected to increase EBITDA and
TRANSACTION SUMMARY
Commercial-scale food and cannabis
manufacturing experience with diluted EPS in 2021 with earnout
existing and deep supply chain structure designed to generate • Upfront purchase of LYF
relationships shareholder value Food Technologies Inc. for
C$24.9 million
Approximately C$17.5
CATEGORY-LEADING FURTHER DIVERSIFIED •
million in consideration
SCALE PLATFORM subject to achieving
Addition of 10,500 square foot Enhanced platform equipped to certain EBITDA
edibles manufacturing facility with produce expectedly higher margin milestones, which if met
standard processing licence and edible products in formats not yet implies a ~4.2x multiple on
pending provincial sales licence introduced to the market fiscal 2022E EBITDA
COMPLIMENTARY AND
SPEED TO MARKET
HIGH-VALUE
ADVANTAGE
PARTNERSHIP NETWORK
Agility and speed to capitalize on Combined supply agreements and
edibles segment with existing roster robust pipeline of near-term
of new innovative products ready for executable opportunities with LPs,
immediate commercialization and brand houses, third-party operators,
market launch and retailers
*The transaction has been unanimously approved by Valens’ T S X : V L N S | O T C Q X : V L N C F 17
Board of Directors and is expected to close on or about February 18, 2021.BRAN D P ARTN ERS S TRATEGICALLY BA LAN CED
ACRO S S CO N S U M E R & PRODU CT CATE GORIE S
GAINING MARKET SHARE ACROSS KEY VERTICALS
1 Cannabis Specialty Consumer
2 Cannabis Mass Consumer
3 Health & Wellness, Medical
CONCENTRATE HASH PRE-ROLLS VAPES OILS EDIBLES BEVERAGES DRINK DROPS TOPICALS /
S SOFT-GELS
*Brand partners defined as unlicensed partners with launched products.
T S X : V L N S | O T C Q X : V L N C F 18LEADIN G CAN ADIAN VAP E
M AN U FA CTU RER
In October, including both licensed and unlicensed customers, by unit
volume Valens manufactured:
• 6 of the top 15 vape • 4 of the top 20 vape • 3 of the top 10 vape
brands in Alberta brands in Ontario brands in British
Columbia
VAPE UNITS SOLD THROUGH THE OCS THAT WERE MANUFACTURED BY VALENS
September 2020 October 2020
15.2% 17.7%
84.8% 82.3%
Source: OCS, Headset, The Valens Company
T S X : V L N S | O T C Q X : V L N C F 19FACILITY E X PAN S ION FOR WHITE LA BEL A N D
CU S TOM M AN U FA CTU RIN G
IP-BASED PRODUCTS TO STRENGTHEN COMPETITIVE ADVANTAGE AND MARGINS
TODAY Q2 2021
230 Carion (K1) 230 Carion 180 Carion Facility GTA Facility
(K1) (K2)
+ +
Cannabis Processing and Cannabis White Label and Custom
Small-Scale White Label Processing Manufacturing
Crude, distillate, full Crude, distillate, full Capsules, Highly customizable Formulation,
spectrum, isolate, spectrum, isolate, tinctures, vapes, edibles with vegan, emulsion,
formulation and formulation and emulsion sprays, topicals sugar-free, low-sugar beverage/edible
emulsion and small-scale and natural ingredient co-packing
beverage filling offerings
Most output
+77,000 sq ft Most output leaving as a
leaving as bulk oil of licensed consumer packaged good
manufacturing
space at Valens
T S X : V L N S | O T C Q X : V L N C F 20TE S TIN G
WE ARE SETTING THE STANDARD
FIRST ISO 17025 ACCREDITED LAB
• Consistent use of validated methodologies
CAN PERFORM ANALYSES IN AS LITTLE AS 2 4 HOURS
• Positioning Valens as the go-to lab with turn arounds 4-5x faster than other leading labs
PUBLISHING FULLY VALIDATED, STANDARDIZED,
AND TURNKEY SOLUTIONS FOR THE GLOBAL CANNABIS INDUSTRY
• Global recognition for methodologies and putting Valens’ name at the forefront of analysis
ADDITIONAL REVENUE SOURCE THROUGH THIRD-PARTY LAB TESTING
• Consistent high margin revenue source, mandated by Health Canada
NAMED A “CENTER OF EXCELLENCE IN PLANT BASED SCIENCE” B Y
Market Cap: 204B*
*As at January 22, 2021
T S X : V L N S | O T C Q X : V L N C F 21ACTION PLA N
12 MONTH STRATEGY
1 2
DELIVER ON EXISTING
CONTRACTS GTA EXPANSION
Optimize existing capacity to Speed to market to maintain
maximize margin advantage
3 4
LAUNCH NEW GLOBAL EXPANSION
AND INNOVATIVE Target markets and
PRODUCTS opportunities that maximize
ROI, and export globally with EU
Build IP portfolio with GMP certification
differentiated product offering
T S X : V L N S | O T C Q X : V L N C F 22FIT FO R PU RPO S E IN TERN ATIO N AL E X P AN S ION
ADVANCED DISCUSSIONS IN KEY MARKETS GLOBALLY
Evaluating select U.S. • Valens is currently able to
opportunities with entry service many high-growth
expected in the next 12 international markets
months (1) without EU level certification
KELOWNA, BC
K1 K2
BOLTON, ON • EU GMP Certification
expected in fiscal 2021
EU
UNITED STATES
ME X I C O
COLOMBIA
PERU
B R A Z IL
CURRENT AREAS
OF INTEREST URUGUAY
GLOBAL MEDICAL MARKET AUSTRALIA
CURRENT FACILITIES
ALONE ESTIMATED AT $180B
ANNUALLY IN 10-20 YEARS*
PENDING FACILITIES
T S X : V L N S | O T C Q X : V L N C F 23FIN AN CIA LS & OU TLOOK
FIRMLY INTO OUR CUSTOM MANUFACTURING AND WHITE LABEL GROWTH PHASE;
FOCUSED ON UNLOCKING SHAREHOLDER VALUE
$35.0
CAPITALIZATION TABLE $30.6 $32.0
(In CAD$MM, Unless otherwise noted) $30.0
Share Price as of January 22, 2020 $2.28
Basic Shares O/S 128.4 $25.0
Fully Diluted Shares O/S 132.2
$20.0 $17.6 $18.1 $17.7
Equity Value 301.5 $16.5
$14.3
Cash and Cash Equivalents 20.3 $15.0
ITM Securities 5.9 $9.8
Debt 9.5 $10.0
Enterprise Value 284.9
$5.0 $2.7
$1.4
Average Analyst Estimates* 2020 2021 2022
$0.0
Revenue 84.6 113.1 188.5
Adjusted EBITDA 16.3 20.8 46.5
EPS -$0.08 $0.00 $0.14
REVENUE (MM) EBITDA (MM)
Implied Multiples* 2020 2021 2022 60 56
Valens EV/EBITDA 17.7x 13.9x 6.2x
Pharma CMO Average EV/EBITDA* 17.4x 15.3x 13.9x 50
Packaged Foods CMO Average EV/EBITDA* 20.2x 12.3x 10.9x
Canadian Cannabis Peer Average EV/EBITDA* 37.1x 85.2x 28.1x 40 36
Analyst Target Price* 30
Average (10 Analysts) $4.10
Implied Return Potential 80% 20
9
10 6
*As at January 22, 2021
2
Source: Company Filings, S&P Capital IQ 0
Note: Shares outstanding and cash balance based on most recent quarterly financials; presented as Treasury Stock
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Method. Pharma CMO coh ort includes: Catalent Inc., Perrigo Company PLC, Recipharm AB. Packaged Foods CMO
coh ort includes: Tate & Lyle PLC, J&J Snack Foods Corp., TreeHouse Foods Inc., Hilton F ood Group PLC. Canadian
Cannabis Peers refer t o coh ort on next slide. SKUs PRODUCTION (MM of grams)
T S X : V L N S | O T C Q X : V L N C F 24APP EN DIX :
ANALYST OUTLOOK
Broker Date Rating Target ($C)
ATB Financial January 20, 2021 Outperform $3.65
Canaccord Genuity November 19, 2020 Speculative buy $6.00
Desjardins Securities January 20, 2021 Buy $3.75
Haywood Securities January 20, 2021 Buy $3.00
M Partners January 20, 2021 Buy $5.00
Mackie Research Capital October 19, 2020 Buy $5.00
Raymond James October 15, 2020 Market perform $3.50
RBC Capital Markets January 20, 2021 Outperform $3.25
Stifel GMP January 20, 2021 Buy $3.25
T S X : V L N S | O T C Q X : V L N C F 25APP EN DIX :
KEY MANAGEMENT
Tyler Robson, B.A. & Sc. Jeff Fallows LLB/MBA, CFA
Chair of the Board, Chief Executive Officer & Co-founder President
Mr. Robson has worked extensively over the last decade in Mr. Fallows is an accomplished finance professional with over
cannabis science, focusing on R&D, proprietary extraction 18 years experience working on a wide range of financial
processing and medical application. He attended the University of transactions in the cannabis, consumer products and industrial
Saskatchewan, graduating with a Bachelor of Arts & Sciences products industries. He spent the last 10 years working with a
degree specializing in biology, before returning to Kelowna to number of cannabis companies to raise capital and has advised
pursue his passion for the cannabis industry. Mr. Robson joined on some of the largest transactions in the sector. Prior to joining
The Valens Company in 2012, moved from the role of COO to CEO The Valens Company, Mr. Fallows worked as a Managing Director
in 2017, and has since significantly scaled operations and increased at AltaCorp Capital Inc.
profitability, leading to the Company’s ability to capture market
share and lead the industry as a major player in the supply chain of Everett Knight, CFA
leading Canadian and international brands.
EVP, Corporate Development and Capital Markets
Mr. Knight holds over a decade of experience in
Chris Buysen, MPAcc, CPA, CA Portfolio Management and Private Equity. At Matco Financial, he
Chief Financial Officer launched the first ever institutional long only cannabis mandate in
Mr. Buysen has over 15 years of diverse financial Canada and managed a small cap fund, ranked first in its category.
experience working as a senior financial executive with many He is known for his thought leadership and expertise in
public and private organizations in a wide range of industries. analyzing, lobbying, investing, advising, and consulting
During this time, he was responsible for internal and external throughout the cannabis value chain.
financial reporting, strategic planning, treasury, tax, information
technology, human resources, financial controls and corporate Paul Kunynetz, J.D.
governance.
General Counsel
Mr. Kunynetz practiced law at McCarthy Tétrault in Toronto prior to
Chantel Popoff joining The Valens Company, where he gained extensive
Chief Operating Officer experience working on high-profile and complex transactions. His
Ms. Popoff has over a decade of experience in managing practice focused on mergers and acquisitions,
21+ Western Canadian retail pharmacy chains, including franchisee/distribution, commercial transactions and private
Shoppers Drug Mart. After her time in pharma, she spent over 6 equity with an emphasis on the automotive and cannabis
years in senior managerial roles in the Canadian natural health industries.
food industry.
T S X : V L N S | O T C Q X : V L N C F 26APP EN DIX :
BOARD OF DIRECTORS
Tyler Robson, B.A. & Sc. Karin A. McCaskill, LL.B.
Chair of the Board, CEO and Co-founder Former SVP, General Counsel & Corporate Secretary of Empire
Mr. Robson has over a decade of experience in the cannabis industry, Company Limited and Sobeys Inc.
with expertise in plant genetics and extraction processes. His Ms. McCaskill has been recognized for various achievements within the
contributions and thought leadership in the industry have led to legal community. In her fifteen-year career at Empire and Sobeys, she
recognition from the Kelowna Chamber of Commerce and grew and lead a national legal services team, and provided legal
Marijuana Venture Magazine. leadership on various high-profile transactions.
Ashley McGrath ADVISORS
Director, President & Owner of Glencoe Developments Inc.
Mr. McGrath has been involved in real estate development for 14 Phil Donne
years, overseeing all aspects of the development business and Past President/CEO of Campbell Company of Canada, Past CEO of
oversees the management of multiple development companies in
Kellogg Canada
the commercial, residential and agricultural space.
Mr. Donne brings over 30 years of international brand
management, re-structures and bold brand and communication
Deepak Anand initiatives including the launch of Vector cereal (the largest new
Director, Co-Founder & CEO of Materia Ventures cereal product in 20 years).
Mr. Anand is known as global leader in the cannabis sector for his
regulatory, political and industry knowledge. Prior to starting Materia, Brett Channer
he was the VP of Business Development & Regulatory Affairs at
CEO of Mass Minority, Past CEO of Saatchi + Saatchi
Cannabis Compliance Inc.
Mr. Channer has over 25 years of marketing industry
experience. He was responsible for leading Saatchi Canada to
Andrew Cockwell, LL.B. “Most Improved Agency in Canada,” as well as one of the Top 10
Managing Partner, Ursataur Capital Management creative agencies in Canada and becoming one of the top
Mr. Cockwell holds a breadth of experience providing financial and performing agencies for growth in the Saatchi Network.
legal advisory services in a variety of complex business contexts across
a wide range of industries, in addition to a track record of fostering
value creation for both private and public companies.
Nitin Kaushal, CPA, CA
President, Anik Capital Corp.
Mr. Kaushal has over 30 years of finance and investment expertise
including having held a number of senior roles within Canadian
investment banks, private equity and the venture capital industry.
T S X : V L N S | O T C Q X : V L N C F 27APP EN DIX :
COMP TABLE
SHARE EQUITY ENTERPRISE EBITDA EPS EV/EBITDA P/E
PRICE VALUE VALUE 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022
(C$mm) (C$mm) (C$mm) (C$mm) (C$mm) (C$mm) (C$mm) (C$mm) (C$mm) (x) (x) (x) (x) (x) (x)
Large Cap LPs
Canopy Growth Corporation C$42.97 $16,143 $15,312 -$354 -$175 $49 -$1.98 -$0.85 -$0.17 nmf nmf nmf nmf nmf nmf
Aurora Cannabis Inc. C$13.54 $2,656 $3,013 -$99 $17 $75 -$21.16 -$1.08 -$0.44 nmf 172.6x 40.4x nmf nmf nmf
Tilray, Inc. US$18.02 $3,127 $3,569 -$42 $17 $51 -$2.13 -$0.77 -$0.25 nmf 214.2x 69.5x nmf nmf nmf
Aphria Inc. C$16.47 $5,439 $5,853 $36 $108 $157 -$0.42 -$0.07 $0.09 nmf 54.2x 37.4x nmf nmf 183.0x
Cronos Group Inc. C$13.55 $4,916 $3,193 -$157 -$105 -$58 $0.04 -$0.30 -$0.21 nmf nmf nmf nmf nmf nmf
OrganiGram Holdings Inc. C$2.18 $506 $492 -$30 -$9 $17 -$0.79 -$0.14 -$0.04 nmf nmf 29.7x nmf nmf nmf
HEXO Corp. C$8.47 $1,035 $976 -$8 $11 $26 -$1.58 -$0.07 -$0.02 nmf 89.4x 37.3x nmf nmf nmf
AVERAGE nmf 132.6x 42.9x nmf nmf 183.0x
Mid Cap LPs
Village Farms International, Inc. C$15.94 $1,262 $1,239 $17 $60 $106 $0.13 $0.67 $1.27 73.9x 20.5x 11.6x 126.0x 23.9x 12.5x
Sundial Growers Inc. US$0.65 $935 $1,035 -$27 -$12 $0 -$0.69 -$0.10 -$0.02 nmf nmf nmf nmf nmf nmf
The Supreme Cannabis Company, Inc. C$0.21 $106 $166 -$14 $8 n.a. -$0.24 -$0.04 n.a. nmf 20.0x nmf nmf nmf nmf
Zenabis Global Inc. C$0.12 $96 $218 n.a. n.a. n.a. n.a. n.a. n.a. nmf nmf nmf nmf nmf nmf
The Flowr Corporation C$0.40 $135 $225 -$17 -$1 $7 -$0.27 -$0.13 -$0.09 nmf nmf 31.9x nmf nmf nmf
WeedMD Inc. C$0.32 $66 $115 -$18 $16 n.a. -$0.06 $0.03 n.a. nmf 7.3x nmf nmf 10.5x nmf
The Green Organic Dutchman Holdings C$0.34 $165 $208 -$30 $1 $6 -$0.37 -$0.03 -$0.01 nmf 228.2x 34.6x nmf nmf nmf
AVERAGE 73.9x 69.0x 26.1x 126.0x 17.2x 12.5x
Small Cap LPs
Emerald Health Therapeutics, Inc. C$0.24 $49 $7 n.a. n.a. n.a. n.a. n.a. n.a. nmf nmf nmf nmf nmf nmf
Delta 9 Cannabis Inc. C$0.52 $53 $84 $4 $11 n.a. n.a. $0.01 n.a. 19.7x 7.3x nmf nmf 52.0x nmf
VIVO Cannabis Inc. C$0.21 $67 $67 n.a. n.a. n.a. n.a. n.a. n.a. nmf nmf nmf nmf nmf nmf
Decibel Cannabis Company Inc. C$0.16 $54 $95 n.a. n.a. n.a. n.a. n.a. n.a. nmf nmf nmf nmf nmf nmf
Harvest One Cannabis Inc. C$0.11 $24 $27 n.a. n.a. n.a. n.a. n.a. n.a. nmf nmf nmf nmf nmf nmf
AVERAGE 19.7x 7.3x nmf nmf 52.0x nmf
Extraction Companies
The Valens Company C$2.28 $296 $289 $16 $21 $47 -$0.08 $0.00 $0.14 17.7x 13.9x 6.2x nmf nmf 16.3x
MediPharm Labs Corp. C$0.72 $132 $126 -$22 $3 $28 -$0.31 -$0.07 $0.05 nmf 40.0x 4.5x nmf nmf 15.4x
Neptune Wellness Solutions Inc. C$2.49 $323 $319 -$52 $2 $57 -$0.69 -$0.31 $0.13 nmf 154.5x 5.5x nmf nmf 19.7x
Radient Technologies Inc. C$0.13 $44 $59 n.a. n.a. n.a. n.a. n.a. n.a. nmf nmf nmf nmf nmf nmf
AVERAGE 17.7x 69.5x 5.4x nmf nmf 17.1x
AVERAGE ALL 37.1x 85.2x 28.1x 126.0x 28.8x 49.4x
MEDIAN ALL 19.7x 47.1x 31.9x 126.0x 23.9x 16.3x
Source: Company Filings, S&P Capital IQ a s a t J a n u a r y 2 2 , 2 0 2 0 ; shares outstanding based on most recent quarterly financials and adjusted for share
issuance transactions and other significant publicly disclosed transactions.
T S X : V L N S | O T C Q X : V L N C F 28CONTACT US
T O RONTO 96 Spadina Ave, Suite 400
Toronto, ON
KE L OWNA 230 Carion Rd
Kelowna, BC
E M AI L IR@TheValensCompany.com
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