Valens Closes On Green Roads Acquisition

CANNANNEW REPORT

The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) has closed its previously announced acquisition of  Green Roads and its manufacturing subsidiary. The value of the deal totaled $40 million, plus up to an additional $20 million in contingent consideration, which will be paid when the company hits certain EBITDA milestones. If all the milestones are met in 2022, the transaction represents approximately 4.5x fiscal 2022 EBITDA. Based in South Florida, Green Roads is the largest privately-owned CBD company in the United States, with a focus on quality from its pharmacist-founded background.  Green Roads says it boasts a leading market share and brand platform in the US CBD industry, with an extensive distribution network consisting of over 7,000 retail stores and a robust e-commerce and marketing platform with over 30,000 five-star reviews across all its product lines. Green Roads is currently one of a small number of US CBD companies that produce their products in their own cGMP facilities, a testament to their dedication to integrity and excellence. Valens said that over the next year it expects to invest approximately $10 million into the Green Roads business to capitalize on the anticipated growth of the US CBD market, projected to reach roughly $15.9 billion by 2026. The investment in Green Roads is expected to contribute to the further development of its highly successful e-commerce platform, support the expansion of its retail distribution network in the US, and increase the brand’s sales and marketing resources to drive market leadership in the health and wellness vertical. “With the closing of this Acquisition, Valens now has a significant presence in the largest cannabinoid market in the world, representing a monumental step in our international expansion strategy and furthering our vision of becoming a global manufacturer of cannabis consumer packaged goods,” said Tyler Robson, Chief Executive Officer, Co-Founder and Chair of The…

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Source : Valens Closes On Green Roads Acquisition

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