Valens Company Inc (OTCMKTS:VLNCF) entered a deal to acquire Green Roads for $40 million. The agreement also includes the majority-owned subsidiary of Green Roads. Valens will also pay an additional $20 million to Green Roads for accomplishing certain milestones.
Valens improves its capability with the acquisition of Green Roads to supply the domestic markets in the US and overseas markets with its extended product line.
Gains entry into the US markets
Green Roads takeover allows Valens to establish a footprint in the US with its leading and trusted CBD wellness and health brand. Valens expects to improve its EBITDA four times on achieving the set milestones in 2022.
Total revenues of CAD 111.6 million
The combined revenues of Valens and Green Roads are CAD 111.6 million in 2020 on a pro forma basis.
The biggest privately owned and Florida based Cannabidiol Company – Green Roads in the US, Green Roads, focuses on delivering high-quality wellness and health products derived from hemp.
The product line of Green Roads comprises pet and personal care products, ingestibles, topicals, and oils. Green Roads also provides B2B manufacturing services for several partners. Its distribution network in the US comprises more than 7,000 retail stores. The company also maintains a robust marketing and e-commerce platform and received more than 30,000 5—star reviews for all its products.
Green Roads is committed to supplying high-quality products besides ensuring transparency to consumers. The company manufactures products at its cGMP facility in the US. It is a testament to its excellence and dedication.
CEO of Valens, Tyler Robson, said the company noticed the value of the Green Roads platform and the top-selling brand after analyzing more than 100 CBD companies in the US. He further said Green Roads would help the company to unlock complimentary benefits in improving revenues.
Green Roads and Valens will create a team to promote growth in the future considering trends in the international market.
Signs a distribution and sale agreement with Yukon
Valens entered a distribution and sale accord with Yukon Liquor Corporation on April 21, 2021. As per the terms of the deal, Yukon Liquor will sell and distribute products manufactured by Valens to the licensed cannabis retailers on its e-commerce platform and in Yukon.
Valens will introduce cannabis 3.0 and 2.0 products to the consumers in Yukon.