Valens sets sights on acquiring all LYF Food Technologies shares in deal that could top $42 million

Growth op

The Valens Company Inc., a B.C.-based manufacturer of cannabis derivative products, is looking to go far and wide with cannabis 2.0 and 3.0 offerings as part of its bid to acquire all issued and outstanding shares of its fellow B.C. company, LYF Food Technologies Inc. In a statement this week, Valens announced it had entered into a definitive agreement to acquire the shares in a cash and share transaction. All told, the proposed transaction would be $24.9 million payable on closing, plus as much as $17.5 million more in consideration “payable upon the business achieving certain earn-out EBITDA milestones,” notes a statement from Valens . Acquiring LYF will strengthen the company’s “already wide-reaching production capabilities for the 2.0 and 3.0 markets,” as well as unlock “significant growth potential with the addition of a cutting-edge platform designed to capitalize on one of the fastest growing product segments in the cannabis industry.” Valens signs multi-year cannabis extraction agreement with Sundial Growers Canadians are increasingly abandoning illicit market, buying more cannabis from legal stores, survey says How to give yourself a break using cannabis Calling LYF “a premier edibles manufacturer,” the acquisition would provide access to “expertise in novel product creation, white label manufacturing (products currently available in B.C.) and infusion technologies,” Valens notes. “LYF brings a proven team with significant experience producing high throughput food products, in addition to experience operating and working with major Canadian grocery chains, health and wellness retailers and pharmacies,” the Valens statement notes. Further, the acquisition provides access to low-cost, active ingredients and LYF’s industry-recognized product IP formulations for 100-plus recipes. That being the case, Valens expects to be able to strengthen “its capabilities to produce higher-margin, new-to-market edible formats in a segment with limited product variability, and increased consumer demand.” It is anticipated that edible products…

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Source : Valens sets sights on acquiring all LYF Food Technologies shares in deal that could top million

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