The Valens Company Inc (NASDAQ:VLNS), a Canadian cannabis company, issued a letter to shareholders explaining efforts to increase efficiency and cut costs. Part of this plan includes shutting down its Citizen Stash facility that Valens acquired last August.
Valens explained that the company will be moving all production of Citizen Stash products to its facilities in Kelowna. Valens also said in the letter that they plan on selling the facility and other “non-core assets.”
Valens has been actively strengthening its balance sheet, recently raising more than $20 in a bought offering deal.
Additionally, we are in the process of monetizing the Citizen Stash's facility and other non-core assets,” the letter reads. “We expect to generate an additional $5 to $10 million in cash over the coming quarters which is incremental to the $20 million in annual cost efficiencies expect through 2022.”
Price Action:
Valens’ stock opened 3.25% higher this morning from its closing price on Tuesday. The stock gave up gains, moving lower with the overall market.
At press time, Valens’ stock is trading at $1.47, down 4.55%. The stock has a 52-week high of $9.93 and a 52-week low of $1.40.
Photo by Alex Shutin on Unsplash
