The Valens (VLNS), a Canadian maker of cannabis products, announced that it has signed a regional distribution agreement with APOTEKA SRL, a Costa Rica-based pharmaceutical holding company with operations throughout Central America and the Caribbean. This partnership offers a strategic entry for Valens brands in Central America
Under this agreement, APOTEKA will bring the nūance brand of Valens to three main markets in Central America, including Costa Rica, the Dominican Republic, and Panama. Valens said it also plans to include its Green Roads brand in the future.
Valens has developed two CBD tinctures for APOTEKA that combine well-known wellness ingredients with CBD. Made with Coconut MCT oil, The products will be produced by Green Roads.
The Valens CEO, co-founder, and chairman Tyler Robson said, “This partnership with APOTEKA, part of GFI Costa Rica a multiregional conglomerate with a 45-year track record, is consistent with our distribution first, asset light, growth model in international markets. The partnership represents a strategic expansion into Central America where APOTEKA will be distributing these products into regions including: Costa Rica, the Dominican Republic and Panama.
“With limited competition currently in these markets, and a reputable distribution partner in APOTEKA, we see a compelling opportunity to further develop an innovative product portfolio, establish a foothold in the region and expand our strategy across other Central American countries in the future as more countries liberalize their cannabis laws.”
Valens also announced that it has secured a C$540,000 order from Cannvalate, its Australian distribution partner, to manufacture GMP products for the Australian and New Zealand markets. (See The Valens stock charts on TipRanks)
On September 7, Raymond James analyst Rahul Sarugaser maintained a Hold rating on the stock and lowered its price target to C$3 (from C$3.50). This implies 19.5% upside potential.
Overall, the consensus is that VLNS is a Strong Buy, based on three Buys and one Hold. The average The Valens price target of C$4.41 implies upside potential of 75.7% to current levels.