JULY 2021 TSX: VLNS OTCQX:VLNCF THEVALENSCOMPANY.COM - The Valens Company
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JULY 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, 2020 and Management’s Discussion and Analysis of the Company for the three-month period ended February 28, 2021 (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 7 of the MD&A for the three-month period ended February 28, 2021 .
T S X : V L N S | O T C Q X : V L N C F 3
OUR MISSION
TO BRING THE BENEFITS
OF CANNABIS TO THE
WORLD
RECENT ANNOUNCEMENTS
• Reported financial results for the second
quarter of 2021
• Entered custom manufacturing
agreement with premier cannabis brand
house, Gallery Brands
• Completed acquisition of leading US CBD
company, Green Roads
T S X : V L N S | O T C Q X : V L N C F 4
BE ST PO SITIO N E D TO D A Y,
AC C E LE R ATING IN TO TO MO R R O W
CANNABIS PROCESSING AND MANUFACTURING CAPABILITIES DRIVE OUR ADVANTAGE
CREATING A LEADING, GLOBAL OPERATING WITH GLOBAL STANDARDS
MANUFACTURING PLATFORM Readying our business model for continued
exportation to high value international markets
Developing a highly adaptable and replicable
and preparing for EU GMP certification
cannabis processing and manufacturing platform
to serve and operate within global markets
BUILDING REPUTATION AND CAPTURING
PROVIDING UNIQUE AND CUSTOMIZABLE MARKET SHARE
PRODUCTS Gaining more high-value partnerships and
establishing The Valens Company as the trusted
Advancing our IP-based product development
partner of choice for leading licensed producers,
platform and evolving our product offering in
international brand houses, and Consumer
conjunction with shifting consumer preferences
Packaged Goods (CPG) companies
in maturing markets
PREPARING FOR THE GROWING MARKET
Strengthening our custom manufacturing
capabilities and efficiencies and increasing total
addressable market with entry into new product
categories with differentiated offerings
T S X : V L N S | O T C Q X : V L N C F 5
O U R BE LIE F
THE MARKET WILL BE DOMINATED BY EXTRACT-BASED PRODUCTS
25%
35% 65% 49% 51%
75%
2017 2019 FUTURE*
OTHER
PRE-ROLLS
CONCENTRATES
6% 9%
9%
EXTRACT-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 VALE NS AD VANTAG E
LEADING THE CANADIAN CANNABIS MARKET WITH A FULL SUITE OF MANUFACTURING CAPABILITIES
CAPSULES TINCTURES VAPES BEVERAGES CONCENTRATES EDIBLES TOPICALS PRE-ROLLS
*Sourced from company presentations, websites and news releases. As at June 30, 2021.
T S X : V L N S | O T C Q X : V L N C F 7
G R O WING R E TAI L MA R K E T
INCREASED OPPORTUNITY FOR 2.0 & 3.0-FOCUSED COMPANIES LIKE THE VALENS COMPANY
Canadian Annualized Retail Sales (C$,B) Flower-based and Extract-based Product Sales (C$,M)
$4.00B $3.8B1 $350M
April 2021 marked the
$3.50B second straight month of $300M
$3.00B
record recreational cannabis Post 2.0
sales in Canada $250M
$2.50B $2.17B
$200M
$2.00B Pre 2.0
$150M
$1.50B
$1.00B $100M
$0.50B $50M
$0.00B $0M
Oct-18
Jan-19
Oct-19
Nov-20
Jun-19
Jul-20
Mar-21
Dec-18
Dec-19
Mar-20
Feb-19
Apr-19
Aug-19
Jan-20
May-20
Oct-20
Jan-21
Sep-19
Jun-20
Dec-20
Nov-18
Nov-19
Jul-19
Feb-20
Apr-20
Aug-20
Feb-21
Apr-21
Sep-20
Mar-19
May-19
Oct-19
Nov-20
Jul-20
Mar-21
Dec-19
Mar-20
May-20
Aug-19
Jan-20
Oct-20
Jan-21
Sep-19
Jun-20
Dec-20
Nov-19
Feb-20
Apr-20
Aug-20
Feb-21
Apr-21
Sep-20
Flower-based Products Extract-based Products
10 +1.7K $3.8B1
Product Segments Retail Stores Annualized Revenue
Source: Statistics Canada, HiFyre
1 Annualized sales based on daily retail sales data in April from Statistics Canada, not including medical sales.
T S X : V L N S | O T C Q X : V L N C F 8
PR O JE C TE D C ANAD IAN R E TAIL C ANNABIS
MAR K E T O PPO R TU N ITY
CANADA COULD BE AT $10B+ IN SALES IN 2024 BASED ON COLORADO’S GROWTH TRAJECTORY
EXTRACT-BASED
PRODUCTS
~$2.5B
~$5.0B POTENTIAL SIZE OF
EXTRACT-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
LAR G E C AP C PG P LA YE R S
LOCAL INNOVATION, GLOBAL INTENT
• Post legalization, Canada is an ideal ESTABLISHED LARGE-CAP PARTNERSHIPS
market for large CPG players to
launch cannabis-infused products
• Some partnerships already
established with lackluster results
to date (Canopy, Hexo and Tilray
have intent to launch)
• CPG players looking to launch
infused products will need to
partner with a licensed processor
• Valens represents the ideal partner
given its market positioning as a
third-party white-label LARGE-CAP CPG PLAYERS THAT HAVE YET TO ENTER
manufacturer
• Having access to a top tier
emulsion technology through
SōRSE by Valens is an asset
T S X : V L N S | O T C Q X : V L N C F 10VALE NS IN THE VALU E C HAIN
UNLOCKING HIGHER MARGINS FOR OUR CUSTOMERS
PRODUCT BRANDING SALES &
DISTRIBUTION
VALENS’ OPERATIONS MANUFACTURING
FORMULATION
PURIFICATION
OUR FOCUS
PROVIDE QUALITY PRODUCTS THAT
OFFER CUSTOMIZED USER EXPERIENCES
TO HELP OUR CUSTOMERS BUILD
DIFFERENTIATED, HIGH VALUE BRANDS
CULTIVATION EXTRACTION /
BIOMASS SOURCING & EXTRACTION
T S X : V L N S | O T C Q X : V L N C F 11E X TR AC TIO N
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 12E X PE R TISE THA T D IF F E R E N TI A TE S
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 13BU SINE SS STR ATE G Y
DELIVERING SUSTAINABLY STRONG EBITDA MARGINS THROUGH THE CYCLE
PHASE 1 EXTRACTION
High margin and low ris k entry into market
$ through accelerated s cale-up
PHASE 2 MANUFACTURING
Utilize technical expertis e and full s uite of
$$ manufacturing capabilit ies to develop unique
product portfolio and maximize margins
PHASE 3 GLOBAL MANUFACTURING
Generate global revenue and high margins in large
$$$ market s by leveraging experience and bes t practices
with replicable plat form
T S X : V L N S | O T C Q X : V L N C F 14E X TR AC TIO N E X P E R TI SE F AC I LITA TE S
R O LL-O U T O F B E SP O K E MANU F AC TU R ING
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 15VALE NS 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
F O R M U L AT I O N S
EXTRACTION C U R R ENT
TECHNOLOGIES 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 16THIR D -PAR TY P R O D U C T D E VE LO P M E NT
AND MANU F AC TU R ING
THE FUTURE OF CANNABIS CONSUMPTION
VALENS 1.0 VALENS 2.0
CURRENTLY MANUFACTURING
CURRENTLY MANUFACTURING COMING SOON
Beverages + More innovative products
Tinctures Two-piece caps
Concentrates
Vapes
Edibles
Soft gels Oral spray
Topicals
T S X : V L N S | O T C Q X : V L N C F 17C APTU R ING MAR K E T SHAR E IN
THE C ANAD IAN R E C MA R K E T
CURRENTLY MANUFACTURING A COMPLETE OFFERING OF 2.0 PRODUCTS
In Q2 2021, Valens held:
~5.0% ~8.0%
Extract-based Cannabis-infused
market share beverage market
in AB, BC, ON share in AB, BC, ON
VALENS IS THE LARGEST THIRD-PARTY MANUFACTURER OF VAPES IN CANADA
Source: HiFyre in Q2 2021 in Alberta, British Columbia and Ontario, not including B2B LP manufacturing
T S X : V L N S | O T C Q X : V L N C F 19G LO BAL WHITE LABE L AND C U STO M
MANU F AC TU R ING
IP-BASED PRODUCTS STRENGTHEN COMPETITIVE ADVANTAGE AND MARGINS
WESTERN CANADA EASTERN CANADA FLORIDA, US
230 Carion 180 Carion GTA Facility
(K1) (K2)
H2 2021*
+ + +
Cannabis White Label and CBD Formulation and
Processing Custom Manufacturing Manufacturing
Five methods of Capsules, tinctures, Highly customizable Formulation, emulsion, Tinctures, Co-manufactured
extraction, product vapes, sprays, topicals, edibles with vegan, and beverage/edible topicals, specialty products,
formulation and and small-scale sugar-free, low-sugar, co-packing capsules and including coffee,
emulsion beverage filling and natural ingredient soft gels gummies, and
offerings chocolate
Globally
Exported
T S X : V L N S | O T C Q X : V L N C F 20
*Valens expects to begin manufacturing and shipping products out of the GTA Facility in the second half of fiscal 2021TE STING
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: ~198B*
*As at June 30, 2021
T S X : V L N S | O T C Q X : V L N C F 212 02 1 STR ATE G IC INITIATIVE S
BECOMING A LEADING CANADIAN CANNABIS CONSUMER PACKAGED GOODS MANUFACTURER
DELIVER ON EXISTING EXPAND DOMESTIC
CONTRACTS AND EXPAND DISTRIBUTION
PARTNERSHIP NETWORK NETWORK
Utilize full suite of manufacturing Increase distribution capabilities
capabilities to drive new business to drive greater market share
and expand existing agreements capture across the country
LAUNCH NEW GLOBAL EXPANSION
PRODUCTS AND GAIN Target markets and
opportunities that maximize
MARKET SHARE ROI, and export globally with EU
Utilize data-driven expertise to GMP certification
continue to build IP portfolio
and maximize SKU and sales
velocity of leading products in
the market
T S X : V L N S | O T C Q X : V L N C F 22O VE R VIE W O F G R E E N R O A D S
FIRST PIECE OF THE PUZZLE IN VALENS’ US STRATEGY
7,000 200,000+
Retail Customers currently
locations opted-in to Green
Road’s email list
• Green Roads is a leading US CBD
company based in Florida with Green Roads Product Portfolio
existing distribution and
manufacturing operations
• Product offering spans all major
categories including tinctures,
topicals, edibles, and more
• Owned manufacturing facility
for tinctures and topicals, while
leveraging co-manufacturers
for more specialized products
• Operates a distribution facility Strong Customer Satisfaction
which supports its B2B and B2C
business lines
• Green Road’s CBD products are
available in multiple major US
retailers 94% 96%
• In recent months, Green Roads
have made strides in bolstering 30,000+ Of Green Roads
customers say they are
Of customers say they
would recommend
Five-star reviews
their online presence to drive likely to purchase again Green Roads to a friend
further e-commerce sales
T S X : V L N S | O T C Q X : V L N C F 23NE AR -TE R M C ATALYSTS
POST GREEN ROADS ACQUISITION CLOSE
EXPANDED HEALTH & INCREASED REMAIN AN ALLY
PRODUCT WELLNESS GLOBAL TO MAJOR CPG
OFFERING MARKET EXPOSURE COMPANIES
LEADERSHIP
Green Roads products Leverage Green Roads’ Products collectively Continue to engage
to launch in Canada brand following in the US sold in 11+ countries with major CPG companies,
in H2 2021 to lead the vertical and expected distribution into now also in the US,
launch new products in new markets imminently looking to enter or
North America and expand their presence
beyond within the space
T S X : V L N S | O T C Q X : V L N C F 24F IT F O R PU R PO SE INTE R NATIO NAL E X PANSIO N
ADVANCED DISCUSSIONS IN KEY MARKETS GLOBALLY
Valens is currently able to service
many high-growth international
markets 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 25F INANC IALS & O U TLO O K
FIRMLY INTO OUR MANUFACTURING GROWTH PHASE;
FOCUSED ON UNLOCKING SHAREHOLDER VALUE
25
CAPITALIZATION TABLE $20.0
$18.8
(In CAD$MM, Unless otherwise noted) 20 $17.6 $18.1
$16.0
Share Price: As of June 30, 2021 $2.91
15
Basic Shares O/S* 186.0
Fully Diluted Shares O/S* 201.8 10
Equity Value 587.2
Cash and Cash Equivalents 49.4 5 $2.7
$1.4
ITM Securities 33.6
0
Debt 8.5
Enterprise Value 512.7 -5 -$2.2
-$4.3 -$5.0
Average Analyst Estimates* 2020A 2021 2022 2023 -10
Revenue 83.8 121.8 241.2 438.7
Adjusted EBITDA 14.1 1.5 37.7 33.7
EPS -$0.16 -$0.11 $0.03 -$0.08 REVENUE (MM) EBITDA (MM)
Implied Multiples* 2020 2021 2022 2023
EV/Revenue 70
62
The Valens Company 6.1x 4.2x 2.1x 1.2x
60 56 57
Canadian Cannabis Peer Average 17.5x 14.4x 9.2x 6.3x 53
CPG - Alcohol and Spirits Average 6.5x 5.8x 5.4x 5.1x 50
EV/EBITDA 36
40
The Valens Company 36.3x 336.3x 13.6x 15.2x
Canadian Cannabis Peer Average 152.4x 468.3x 123.5x 51.6x 30
CPG - Alcohol and Spirits Average 21.7x 19.4x 17.0x 15.2x
20
Analyst Target Price*
Average (9 Analysts) $4.44 10
Implied Return Potential 53%
0
*Asat June 30, 2021 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
Source: Company Filings, S&P Capital IQ
Note: Shares outstanding and cash balance based on the most recent quarterly financials SKUs PRODUCTION (MM of grams)
adjusted for subsequent events; presented as Treasury Stock Method. Canadian Cannabis Peers
refers t o coh ort in the app end ix. CPG – Alcohol and Spirits cohort includes Anheuser-Busch
InBev SA/NV, Diageo plc, Constellation Brands, Inc., Brown-Forman Corporation, Molson Coors
Beverage Company, The Boston Beer Company, Inc.
T S X : V L N S | O T C Q X : V L N C F 26APPE ND IX :
COMP TABLE
Share Equity Revenue EBITDA EV/Revenue EV/EBITDA
Company Price Value EV 2020E 2021E 2022E 2023E 2020E 2021E 2022E 2023E 2020E 2021E 2022E 2023E 2020E 2021E 2022E 2023E
(C$) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM)
Canopy Growth Corporation $29.98 $11,777 $11,318 $513.3 $712.4 $1,006.0 $1,547.2 -$348.3 -$239.1 -$2.8 $101.8 22.1x 15.9x 11.3x 7.3x neg neg nmf 111.2x
Tilray, Inc. $22.38 $10,061 $9,898 $602.8 $809.2 $1,160.8 $1,405.8 $36.9 $78.0 $193.8 $257.4 16.4x 12.2x 8.5x 7.0x 268.4x 126.8x 51.1x 38.5x
Cronos Group Inc. $10.68 $3,969 $2,419 $58.5 $90.7 $161.7 $284.9 -$184.3 -$152.8 -$81.9 -$26.8 41.4x 26.7x 15.0x 8.5x neg neg neg neg
Aurora Cannabis Inc. $11.23 $2,224 $2,228 $283.1 $247.1 $332.6 $515.6 -$112.8 -$52.6 $16.1 $72.9 7.9x 9.0x 6.7x 4.3x neg neg 138.6x 30.5x
Sundial Growers Inc. $0.97 $2,341 $1,448 $60.9 $54.8 $83.3 $106.0 -$25.6 $1.5 $8.0 $12.7 23.8x 26.4x 17.4x 13.7x neg 941.8x 181.7x 113.8x
OrganiGram Holdings Inc. $3.55 $1,060 $1,052 $81.0 $76.5 $128.6 $196.1 -$34.9 -$23.1 $3.6 $30.3 13.0x 13.8x 8.2x 5.4x neg neg 290.5x 34.7x
HEXO Corp. $7.20 $1,080 $1,061 $111.6 $160.6 $231.6 $348.3 -$8.1 -$19.9 $16.2 $60.9 9.5x 6.6x 4.6x 3.0x neg neg 65.7x 17.4x
The Valens Company Inc. $2.91 $587 $513 $83.8 $121.8 $241.2 $438.7 $14.1 $1.5 $37.7 $33.7 6.1x 4.2x 2.1x 1.2x 36.3x 336.3x 13.6x 15.2x
Average All 17.5x 14.4x 9.2x 6.3x 152.4x 468.3x 123.5x 51.6x
Median All 14.7x 13.0x 8.4x 6.2x 152.4x 336.3x 102.1x 34.7x
Source: Company Filings, S&P Capital IQ a s a t J u n e 3 0 , 2 0 2 1
T S X : V L N S | O T C Q X : V L N C F 27APPE ND IX :
ANALYST OUTLOOK
Broker Date Rating Target ($C)
ATB Financial April 28, 2021 Outperform $4.50
Canaccord Genuity April 28, 2021 Speculative buy $4.50
Desjardins Securities June 21, 2021 Buy $4.25
Haywood Securities June 4, 2021 Buy $4.50
M Partners April 28, 2021 Buy $5.00
Mackie Research Capital April 29, 2021 Buy $4.50
Raymond James April 30, 2021 Market perform $3.50
RBC Capital Markets April 27, 2021 Outperform $3.50
Stifel GMP June 21, 2021 Buy $5.75
T S X : V L N S | O T C Q X : V L N C F 28APPE ND IX :
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 18
cannabis science, focusing on R&D, proprietary extraction years of experience working on a wide range of financial
processing and medical application. Under Mr. Robson’s transactions in the cannabis, consumer products and industrial
leadership, The Valens Company has repositioned its core offering products industries. He spent the last 10 years working with a
from extraction services to product development and number of cannabis companies to raise capital and has advised
manufacturing, becoming the largest third-party cannabis on some of the largest transactions in the sector. Prior to joining
consumer packaged goods manufacturer in Canada. The Valens Company, Mr. Fallows worked as a Managing Director
at ATB Financial.
Sunil Gandhi, CPA
Chief Financial Officer Everett Knight, CFA
Mr. Gandhi brings 25 years of corporate and operational finance EVP, Corporate Development and Capital Markets
experience largely in the consumer packaged goods and alcohol Mr. Knight holds over a decade of experience in
beverage industries., with a demonstrated track record in refining Portfolio Management and Private Equity. At Matco Financial, he
operations and supporting growth for both large public launched the first ever institutional long only cannabis mandate in
companies and high-growth private enterprises. He previously Canada and managed a small cap fund, ranked first in its category.
served as CFO at Trophy Foods and VP, Finance for one of North He is known for his thought leadership and expertise in
America’s largest private alcohol beverage companies. analyzing, lobbying, investing, advising, and consulting
throughout the cannabis value chain.
Chantel Popoff
Chief Operating Officer Paul Kunynetz, J.D.
Ms. Popoff has over a decade of experience in managing General Counsel
21+ Western Canadian retail pharmacy chains, including Mr. Kunynetz practiced law at McCarthy Tétrault in Toronto prior to
Shoppers Drug Mart. After her time in pharma, she spent over 6 joining The Valens Company, where he gained extensive
years in senior managerial roles in the Canadian natural health experience working on high-profile and complex transactions. His
food industry. practice focused on mergers and acquisitions,
franchisee/distribution, commercial transactions and private
Adam Shea equity with an emphasis on the automotive and cannabis
industries.
Chief Commercial Officer
Mr. Shea holds over 16 years of experience in commercial strategy,
sales, and marketing with a strong knowledge of the Canadian and
US consumer packaged goods landscape. He has held senior
positions with various consumer-focused organizations in the food,
beverage, tobacco and cosmetics industries, such as Weston
Foods, Red Bull, Coty Beauty and British American Tobacco.
T S X : V L N S | O T C Q X : V L N C F 29APPE ND IX :
BOARD OF DIRECTORS
Tyler Robson, B.A. & Sc. Drew Wolff, MBA
Chair of the Board, CEO and Co-founder Former VP, CFO, International and Channel Development, Starbucks
Mr. Robson has over a decade of experience in the cannabis industry, Mr. Wolff holds over 20 years of deep functional expertise in financial
with expertise in plant genetics and extraction processes. His planning, accounting, tax, M&A, and investor relations. Most recently, he
contributions and thought leadership in the industry have led to spent the past five years in senior finance roles at American
recognition from the Kelowna Chamber of Commerce and multinational coffeehouse chain Starbucks where he led global cash
Marijuana Venture Magazine. management, financial forecasting and enterprise risk management.
Ashley McGrath ADVISORS
Director, President & Owner of Glencoe Developments Inc.
Phil Donne
Mr. McGrath has been involved in real estate development for 14
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
Guy Beaudin, MBA, PhD initiatives including the launch of Vector cereal (the largest new
cereal product in 20 years).
Senior Partner, RHR International
Dr. Beaudin is a recognized and trusted advisor to CEOs, boards of
directors, and senior executive teams across North America, Europe, Brett Channer
Asia, and Australia, assisting them in the process of leading CEO of Mass Minority, Past CEO of Saatchi + Saatchi
transformational change in their organizations. 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
creative agencies in Canada and becoming one of the top
Managing Partner, Ursataur Capital Management
performing agencies for growth in the Saatchi Network.
Mr. Cockwell holds a breadth of experience providing financial and
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.
Karin A. McCaskill, LL.B.
Former SVP, General Counsel & Corporate Secretary of Empire
Company Limited and Sobeys Inc.
Ms. McCaskill has been recognized for various achievements within
the legal community. In her fifteen-year career at Empire and Sobeys,
she grew and lead a national legal services team.
T S X : V L N S | O T C Q X : V L N C F 30CONTACT 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
P HO NE 1 647.956.8254You can also read
