KELOWNA — The Valens Company Inc., a manufacturer of cannabis derivative products, announces that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of LYF Food Technologies Inc. in a cash and share transaction for closing consideration of CDN$24.9 million, plus up to an additional CDN$17.5 million in consideration payable upon the business achieving certain earn-out EBITDA milestones.
LYF is an edibles manufacturer based in Kelowna, British Columbia with expertise in novel product creation, white label manufacturing and infusion technologies. Similar to Valens, LYF operates a product development and manufacturing platform focused on consumer-driven innovation, and product safety and consistency. LYF brings a proven team with experience producing high throughput food products, in addition to experience operating and working with major Canadian grocery chains, health and wellness retailers, and pharmacies. Just minutes away from Valens’ headquarters, LYF’s purpose-built manufacturing facility produces innovative edible products using the highest quality ingredients and cannabis extracts, offered in proprietary delivery methods.
Valens’ access to low-cost active ingredients paired with LYF’s industry-recognized product IP formulations of over 100 recipes strengthens its capabilities to produce higher-margin, new-to-market edible formats in a segment with limited product variability, and increased consumer demand. With the added infrastructure and expertise from the LYF Acquisition, The Valens Company expands its edibles footprint and strategy to remain a best-in-class manufacturing platform for its partners, while also increasing its ability to capture market share in the rapidly growing product category. Similar to consumer trends in the US cannabis market, edible products are anticipated to represent over 10% of sales in the maturing Canadian cannabis market.
Tyler Robson, Chief Executive Officer and Chair of the Board of The Valens Company, said, “LYF has set the standard of what high quality edibles should be and has developed a diverse and flexible manufacturing platform to play a dominant role in the Canadian edibles market. LYF stood out for its product innovation and marketing teams, as well as its broad range of edible products which will introduce new formats to Canadian consumers that are typically only available in more mature markets. We look forward to further developing our product offering to reach more consumers with high-quality and unique cannabis edibles as this product segment continues to gain in popularity.”