Valens GroWorks’ revenue shot up nearly threefold to 8.8 million Canadian dollars ($6.7 million) in the last fiscal quarter on strong demand for its white-label services ahead of Canada’s infused cannabis market launch later this year.
The revenue was ahead of analyst expectations.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at CA$2 million for the quarter ending May 31.
The British Columbia-based company said it adjusts its EBITDA based on “share-based payments, unrealized gains and losses from short-term investments and other one-time and noncash items, including impairment losses.”
The largest “adjustment” in the quarter was for “contract termination costs” worth CA$5.9 million.
The company said gross profit rose to CA$5.1 million, compared with CA$900,000 the period before.
Valens is a leader in Canada’s market for white-label products – those manufactured by one company for branding and marketing by another.
Key to addressing that market will be annual extraction capacity. Valens said it increased that number to 425,000 kilograms (937,000 pounds) of dried cannabis and hemp biomass in the quarter.
The company announced three new extraction partners in the February-May period, including The Green Organic Dutchman, Hexo and Tantalus Labs. It also tripled a deal with Tilray to 60,000 kilograms per year.
Valens started trading on the TSX Venture Exchange last week under the ticker symbol VGW.
More details on Valens’ results can be found here.