Cannabis products provider The Valens Company Inc. has entered into a supply and distribution agreement with Manitoba Liquor and Lotteries Corporation. It will distribute products to private retailers with an LGCA-license in Manitoba. This increases its distribution network to five provinces in Canada.
Valens (VLNCF) Chief Executive Officer, Co-Founder and Chair, Tyler Robson, said, “Expanding our domestic distribution capabilities is one of our top strategic initiatives to drive growth this year and beyond.”
Robson added, “Our entry into the Manitoba market takes us a step further toward capturing larger market share and bringing the Valens advantage to consumers in a new province, enabling greater access to our high-quality products across Canada.” (See Valens stock analysis on TipRanks)
The company’s distribution reach now includes Manitoba, British Columbia, Ontario and Saskatchewan, with additional plans underway to add more provinces to its network.
Last month, Canaccord Genuity analyst Shaan Mir reiterated a Buy rating on the stock with a $2.79 price target (25.3% upside potential).
Commenting on Valens’ acquisition of LYF Foods, Mir said, “Valens has secured entry onto BC retailer shelves through white labelling agreements with LPs/brands that not only provide Valens with immediate exposure to the edibles market, but also present opportunity to integrate Valens IP and cross-sell the company’s entire product portfolio.”
Overall, the consensus on the Street is that VLNCF is a Moderate Buy, based on 4 Buys and 1 Sell. The average analyst price target of $2.61 indicates an upside potential of about 17% from current levels. Shares have gained about 51.2% over the past year.