Kelowna, B.C., September 10th, 2019 – 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.
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.Jeffrey Fallows, President of Valens
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."
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.
Disclaimer: Past performance is not an indicator of future performance.
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.