Kelowna cannabis company Valens' stock to trade on Nasdaq

Kelowna-based cannabis company Valens is hoping to tap into the vast American investment market by listing its shares on the New York City-based Nasdaq stock exchange.

"Listing on Nasdaq is the next step to our capital markets strategy," said Valens CEO Tyler Robson.

"We believe this listing will enable Valens and its shareholders greater access to liquidity, increased corporate visibility and a broader shareholder base, in an effort to create long-term shareholder value."

Valens is expected to be listed, under the symbol VLNS, when the Nasdaq opens tomorrow morning.

The new listing will replace Valens' previous listing on the OTCQX under the VLNCD symbol.

The QX is the top tier of the three over-the-counter exchanges operated by New York-based OTC Markets Group.

But,it is not as prestigious as the Nasdaq, which has a market capitalization of $19.4 trillion and is the second largest stock exchange in the world behind only the New York Stock Exchange.

Investors who hold stock purchased on the OTCQX don't have to do anything as a result of the up-listing and symbol change.

Their shares will automatically be switched over to Nasdaq trading.

Valens shares closed today on the OTCQX up 11 cents at US$3.61.

Valens shares also trade, and will continue to trade, on the Toronto Stock Exchange under the symbol VLNS.

Today, stock closed up 15 cents on the Toronto exchange at CDN$4.60.

Over the past year, shares have been as high as $12 and as low as $3.77.

Share price on the Canadian and American exchanges tends to mirror each other, taking into account the currency difference.

To prepare for listing on Nasdaq, Valens, on Nov. 16, restructured to roll three stocks into one in order to make one share worth US$3 or more, which is a requirement for Nasdaq.

"Our Nasdaq listing represents yet another important milestone...as we continue to advance our global growth initiatives by capitalizing on the legalization of cannabis around the world and strengthening our corporate governance," sayd Robson.

Valens is one of the largest cannabis manufactures in the world.

Most of its more than 225 employees are based at the company's production facilities in Lake Country, which are a one-stop shop for transforming dry cannabis and hemp into consumer packaged goods for the adult recreational, medical and wellness markets.

Valens provides production and distribution for many clients, including Aurora Cannabis, Fire & Flower.

Shoppers Drug Mart is Valens' largest medical cannabis client.

Valens also manufactures, distributes and sells CBC products in the US.

Valens is always in growth mode and completed four strategic acquisitions this year -- Green Roads, Citizen Stash, Verse and Lyf Edibles.

On Oct. 13, Valens reported gross revenue of $24.6 million in its third quarter, up 32.7% from $18.5 million in Q3 2020.

Valens is a true Kelowna success story.

Robson grew up here and graduated from Rutland Secondary School in 2007 before attending the University of Saskatchewan on a football scholarship, playing for the Huskies and earning a biology degree.

Robson returned to the Okanagan and co-founded Valens in 2012, long before the legalization of cannabis in 2018.