Company announces record Q3 2019 revenue
guidance of $16 million –
$17 million
KELOWNA, Sept. 10, 2019 /CNW/ - Valens GroWorks Corp.
(TSXV: VGW) (OTCQX: VGWCF) (the "Company" or
"Valens"), a vertically integrated provider of industry
leading extraction products and services; including a diverse suite
of extraction methodologies, next generation cannabinoid delivery
formats and an ISO 17025 accredited analytical lab is pleased to
announce revenue guidance for the recently completed third quarter
2019 in the range of $16 million –
$17 million, a significant increase
over its second quarter 2019 revenue of $8.8
million.
Record Third Quarter 2019 Revenue Guidance
The Company expects to report that it has extracted over 26,000
kilograms of cannabis and hemp biomass in the third quarter of
2019. This represents a significant ramp in extraction volumes
compared with the 8,547 kilograms of dried cannabis and hemp
biomass it processed in the second quarter of 2019, driven by the
build out of the Company's ethanol extraction capabilities and
increasing volumes from our new and existing customers.
Jeffrey Fallows, President, said
"We continue to see a significant ramp up in volumes month over
month with August seeing almost 50% of the volumes in the third
quarter. That pace has continued to accelerate into September
as we look to fill our existing capacity on a run-rate basis in the
next 6 months."
Tyler Robson, CEO, commented,
"Our 425,000 kilograms of extraction capacity enabled us to process
record volumes in the third quarter of 2019, making us the largest
processor of cannabis and hemp biomass in Canada and driving significant revenue growth
for the Company. We continue to execute on delivering the highest
quality extraction services to our customers as the demand for
distillates ramps up in anticipation of edibles and concentrates
hitting the shelves later this year. As more companies begin to
harvest large volumes of licensed industrial hemp, we also expect
demand for hemp extraction, processing and CBD-infused product
formulation to accelerate. To meet this demand, we have developed
what we believe is a first-of-its-kind ethanol extraction line that
utilizes equipment from around the world to deliver high quality
distillate to our customers. Looking to the future, and to position
us to keep pace with the growth of the industry, we are also
expanding our 425,000 kilogram capacity to over 1,000,000 kilograms
in the first half of 2020."
Live Investor Webcast
The Company is pleased to also announce its participation on
VirtualInvestorConferences.com on September
12th, at 2:00 PM
EST, for a live investor presentation.
LINK: https://tinyurl.com/0912CannabisVICAgenda
This will be a live, interactive online event where investors
are invited to ask the company questions in real-time. If attendees
are not able to join the event live on the day of the conference,
an archived webcast will also be made available after the event. It
is recommended that investors pre-register and run the online
system check to expedite participation and receive event
updates.
Recent Company Highlights
- Increased its annual extraction capacity to 425,000 kilograms
with plans to surpass 1,000,000 kilograms per annum.
- Added to The Cannabis ETF which trades on the New York Stock
Exchange.
- Commenced trading on the TSX Venture Exchange and on the OTCQX
best market in the U.S.
- Valens opened new offices in Toronto as it gears for geographical
expansion.
- Reported record $8.8 Million in
Revenue and Adjusted EBITDA of $2.0
Million in the second quarter of fiscal 2019.
- Expanded its extraction partnership with Tilray Canada Ltd.
Increasing the volume of extraction services and has added an
option to provide contract manufacturing services.
Learn more about the event at
www.VirtualInvestorConferences.com.
About Valens GroWorks
Valens GroWorks Corp. (TSXV:VGW) (OTCQX:VGWCF) is a
multi-licensed, vertically-integrated cannabis company focused on
being the partner of choice for leading Canadian and international
cannabis brands by providing best-in-class, proprietary services
including CO2, ethanol, hydrocarbon, solvent-less and terpene
extraction, analytical testing, formulation and white label product
development. Valens is the largest third-party extraction
Company in Canada with an annual
capacity of 425,000 kg of dried cannabis and hemp biomass at our
purpose-built facility in Kelowna,
British Columbia which is in the process of becoming
European Union (EU) Good Manufacturing Practices (GMP)
compliant. Additionally, our subsidiary Valens Labs is a Health Canada licensed ISO
17025 accredited cannabis testing lab providing sector-leading
analytical services and has partnered with Thermo Fisher Scientific
to develop a Centre of Excellence in Plant-Based Science. For
more information, please visit http://valensgroworks.com. The
Company's investor deck can be found specifically at
http://valensgroworks.com/investors/
Notice regarding Forward Looking Statements
This news release contains certain "forward-looking statements"
within the meaning of such statements under applicable securities
law. Forward-looking statements are frequently characterized by
words such as "anticipates", "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed", "positioned" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout
this news release. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The Corporation is under no obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law.
The TSXV or other regulatory authority has not reviewed,
approved or disapproved the contents of this press release. We seek
Safe Harbour.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/valens-announces-guidance-for-record-q3-2019-revenue-and-participation-in-live-investor-webcast-on-september-12th-300914829.html
SOURCE Valens GroWorks Corp.
