Valens Company Posts Impressive Q4 Earnings, Revenue Jumps 85%
The cannabis extraction services sector has grown at an impressive pace over the past months, and one of the most notable Pot stock to watch is Valens Company (OTCQX: VLNCF). The company released its financial results for the fourth quarter on Monday this week, and it managed to exceed expectations significantly. The company generated revenues of C$30.6 million, which went past the analysts’ estimate of C$28 million by as much as 11%. The company had provided a projection of C$27 million to C$30 million. The solid fourth-quarter performance was further underlined by an 85% sequential growth in revenues.
Valens generated EBITDA of C$17.7 million and blew past the analysts’ estimates of C$12 million. Valens benefitted significantly from its ‘white label’ business. In the ‘white label’ business, Valens Company (OTCQX: VLNCF) manufactures products for other producers, who simply stick their labels on to the packaging.
The company’s strong performance in the fourth quarter is expected to be welcomed by the market, and it is believed that the Valens stock could continue to outperform in the coming days. The latest performance is further proof that Valens is well-positioned to profit substantially once the cannabis market expands. The company provides extraction services for CBD as well as THC, and those markets could grow exponentially in the coming years.
Pot stock to watch: Valens Company
However, that is not all. The legalization of cannabis derivatives or ‘cannabis 2.0’ presents another massive opportunity for companies like Valens. The demand for derivative products is going to results in a higher demand for extraction services. On the other hand, the legalization of hemp in the United States is also expected to drive demand for hemp-based CBD products.
Hence, Valens Company (OTCQX: VLNCF) seems like a company that could emerge as a major player in the cannabis extraction space in Canada and then makes important strides in the United States. It is also important to note that the company counts some of the biggest names in the cannabis industry like Tilray, Hexo, Canopy Growth, and Hexo among its clients.
Source: Stock Market Press
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