When Valens Company Inc. (OTCMKTS: VLNCF). entered the US market, the aim was to gain a footprint in the health and wellness sector. Little did it know that it would end up being a leading manufacturer of cannabis products. We have seen the cannabis industry massively expand globally as more countries legalize marijuana and cannabis-related products. Valens has had a first-hand positive impact on this expansion.
In its Q2 2021 financial results, the company highlighted a 16.1% increase of its gross revenue, settling at $20.5 million compared to $17.6 million in Q2 2020. Additionally, the new revenue increased to $18.8 million in Q2 2021, over and above the $17.6 million in Q2 2020. The SKU listings were the most celebrated, increasing 76.0% to 132 in Q2 2021 compared to 75 in Q1 2021. Expectations are high to have a total of 181 SKU listing by the end of Q3 or Q4 2021. Thanks to the acceptance of 40 of them by provincial distributors.
The CEO of the Valens Company, Tyler Robson, described the material growth in SKU listings as a testament to the innovation and quality the company is bringing to consumers and retailers. And that despite ongoing challenges presented by the pandemic, their business model demonstrated resilience. They gained significant market penetration across the country.
The Continued Drive of Corporate Strategies to Advance its Global Footprint
With the momentum into the third quarter and with the addition of 40 SKUs, the Valens Company says it is not leaving anything to chance. Instead, they are quickly embracing execution of strategies, which will enhance their capabilities, including innovation. As a result, the company is well-positioned to capitalize on new products, specifically in the flower, pre-roll, beverage, concentrates, and edibles categories.
Other strategies and initiatives include acquisitions, which will strengthen its capabilities to supply global markets with an expanded product offering. Some of its acquisitions include LYF and Green Roads. Meanwhile, The Valens is already benefiting from an expanded Canadian distribution network incorporating Alberta, British Columbia, Ontario, and Saskatchewan.
CLS Holdings USA Inc. (OTCMKTS: CLSH) Announces 63.1% YoY Net revenue Increase for its Nevada Subsidiaries
CLS Holdings USA Inc. (OTCMKTS: CLSH) has announced operational and financial results for June 2021 for its wholly-owned subsidiaries in Nevada, where net revenue was $1.8 million with a gross margin of 56.2%. In addition, the results indicated 8.9% gross margin increases and 63.1% revenue increase YoY.
Oasis Cannabis reported 48.9% revenue growth in June.
Oasis Cannabis, a retail subsidiary, reported a 48.9% monthly revenue increase YoY and a 36% increase in processed transactions. The branded wholesale unit, City Trees, reported a 110.7% monthly increase in YoY net revenue. The combined monthly net revenue from both units was up 63.1% YoY. Although the market is extremely competitive, the company’s performance has exceeded Nevada’s average.
The exceptional results are a high number of local Oasis customers estimated to be around 80%, with only 20% attributed to tourists. Most importantly, there was a 10% increase in tourist numbers visiting dispensaries compared to a year ago.
Andrew Glashow, CLS COO & President, said, “This first month of our fiscal year was full of incredible opportunities for our company’s growth. Oasis is buzzing with consistent local and tourist traffic, and our City Trees brand has maintained huge year-over-year sales increases each month for the last year. We’re optimistic that our successes with City Trees and Oasis will enable us to grow our portfolio of brands significantly over the coming months.”
Sasha Palatnikov endorsed CLS
CLS announced through the City brand a limited endorsement of Sasha Palatnikov, UFC welterweight fighter, following the organization’s easing of restrictions in the use of cannabis for fighters. The Nevada State Athletic Commission bolstered the endorsement following its decision to stop restrictions on marijuana use by UFC fighters. In addition, the market interest is growing for the City Trees brand and CLS’ toll processing capabilities of its North Las Vegas extraction facility. As a result, the company is charting a path for future growth and business strategy execution.
Australis Capital Inc. (OTCMKTS: AUSAF) Signs Binding Agreement To Acquire LOOS
Australis Capital Inc. (OTCMKTS: AUSAF), which operates as Audacious, has entered a binding term agreement to purchase all outstanding and issued shares of Gary maverick Inc. which operates under the name LOOS. LOOS is a Santa Cruz, California-based CVBD infused shot beverage operator.
Audacious to acquire LOOS as it targets CBD infused beverages segment
With the acquisition, audacious will be adding an exceptional product line and brand to its portfolio at a cannabis savvy target market, cutting across various demographics to reach experienced and canna-curious consumers. Most importantly, the LOOS team will bring more than a decade of combined cannabis experience with brands such s Flow Kana, Loudpack, Plus Products, and 710 Labs.
After closing the deal, LOOS founders will be part of the Audacious sales team reporting to COO Duke Fu. The business development team reports to Leah Bailey, the chief business development officer. Anthony Bendana will be the Audacious VP of West Coast sales.
Bailey said, “With LOOS we are adding a fresh and exciting brand and consumer segment with compelling products that offer a unique user experience. Furthermore, with Ben and Anthony, we are adding two aggressive, highly successful and commercially savvy people to our team, which will help us to build new distribution networks for all Audacious brands and product lines. The deal is structured to ensure full alignment with AUSA shareholder interests, and we anticipate the LOOS transaction to become accretive rapidly.”
Audacious keen on expanding in the California market
Audacious CEO Terry Booth said that the transaction signals the company’s intended entry into the CBD-infused beverage market, which industry experts say will be one of the most critical categories in the cannabis sector. He said that the acquisition of LOOS and its team gives Audacious a head start and adds a revenue-generating product line to its portfolio. In addition, Booth said that other transactions in California are progressing well.
SLANG Worldwide Inc. (OTCMKTS: SLGWF) Partners with Snowcrest to Bring District Edibles and O.pen to Washington
SLANG Worldwide Inc. (OTCMKTS: SLGWF) has announced the launch of two of its top-selling brands, District Edibles, and O.pen, in Washington State through a strategic alliance with Vancouver, WA-based grower and processor Snowcrest LLC.
SLANG brings its bestselling cannabis products to Washington
O.pen is among the bestselling vape brands in American, and customers in Washington can now access the product. In addition, district Edibles will launch in the state from August, and this will enhance SLANG’s product offering in Washington. Most importantly, the strategic collaborating with Snowcrest will facilitate the production of SLANG brands in a vertically integrated facility.
CEO of SLANG Chris Driessen said, “Washington is one of the largest cannabis markets in the United States and we are excited to launch our first products for the adult-use market. This strategic partnership enables us to increase our Gross Merchandise Value metric and expand our retail distribution network through a well-respected, vertically integrated operator with an established track record of success.”
Snowcrest to produce SLANG Branded products
As per the previously announced collaboration, Snowcrest will produce SLANG branded products. On the other hand, SLANG sales and marketing team will be responsible for the distribution of the products to dispensaries state-wide. The deal follows a royalty-based payment structure. Also, Dolce Foglia LLC, a full-service flavor house that caters to the food and beverage sectors, collaborates with Snowcrest to offer premium flavors in various edible products.
Snowcrest LLC owner Ryan Fabian, “We are thrilled about the strategic alliance with SLANG Worldwide for the Washington State cannabis market. The widely respected brands by SLANG, along with both teams’ shared core values and vision of growth are a perfect fit. We proudly manufacture the highest quality flower, vape and edibles for distribution throughout the State of Washington. We look forward to years of successful growth together with the dynamic team and product brands of SLANG Worldwide.”