VGWCF - Valens GroWorks Corp.

Other OTC - Other OTC Delayed Price. Currency in USD
+0.3000 (+13.82%)
At close: 3:59PM EDT
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Previous Close2.1700
Bid0.0000 x 0
Ask0.0000 x 0
Day's Range2.1900 - 2.4900
52 Week Range0.8475 - 3.6600
Avg. Volume185,192
Market Cap292.66M
Beta (3Y Monthly)1.21
PE Ratio (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
Trade prices are not sourced from all markets
  • 3 Cannabis Extraction Stocks Poised To Rally

    3 Cannabis Extraction Stocks Poised To Rally

    As Canada heads towards Cannabis 2.0, the stock market will start looking towards companies that provide more value than pure dried cannabis cultivation output. Companies that offer high value services to the industry without the large capital investments required to build massive growing facilities will garner more investor appeal and higher stock valuations.The cannabis extractor space is just the area to watch going into 2020 as the companies become more valuable with Cannabis 2.0 products requiring more specialized capabilities from integrated extraction service providers. The sector is generally focused on bulk oil extracts now, but the move into beverages, edibles, vapes and concentrates will require more complex capabilities and facilities.The key here is that while pot has been grown illegally for centuries by various individuals and groups, the market for cannabis extracts is relatively untapped. Companies moving up the value chain should grab higher margins while not having to compete with illegal sources. The extraction of cannabis concentrates is a complex and potentially dangerous process and should only be performed by trained professionals providing a market advantage to the companies with these capabilities.Any company that can grab market share in this area and establish themselves as a leading provider of high-quality extraction services and product testing will reward shareholders. The future market has the potential to shift towards 75% oil based products according to Cowen Equity Research leaving the companies involved in the extraction and product development process as the potential future market leaders.We’ve delved into three small companies poised to profit from the demand for third party cannabis extraction services and the development of high-value add products:Valens GroWorks (VGWCF)One of the major players in the cannabis extraction business is Valens GroWorks with contracts with 5 of the top 10 cannabis companies in Canada. The company is building a large extraction facility with a target for 1,000,000 kg of annual throughput while having 240,000 kg in demand from customers for 2020.The company recently updated guidance for Q3 to revenues of $16 million to $17 million, up from only $8.8 million in the prior quarter. Valens GroWorks projects extracting 26,000 kg of cannabis and hemp biomass in the quarter ending in August with 50% of the extractions taking place in the last month.The company is in the process of moving annual processing capabilities from 425,000 kg of cannabis and hemp biomass to 1,000,000 kg by early 2020. In the process, the company forecasts reaching $218.1 million in 2021 revenues with over $100 million in EBITDA profits.Valens GroWorks generated a solid $2.0 million in EBITDA profits in the last quarter and another quarter of huge profits would push the stock higher in an industry where losses are very common now. The cannabis extraction company has the additional catalyst of listing on a major stock exchange in the future. With a fully diluted share count of 140 million shares, the stock is relatively cheap at a market cap of only $325 million.The stock is an incredible value of below 4x EBITDA targets for just a year out from where the market will start looking at 2021 estimates.Over the last three months, Valens GroWorks stock has received 3 Buy ratings. As a result, the stock has a ‘Strong Buy’ analyst consensus rating. These analysts believe (on average) that the cannabis stock has big upside potential of over 190% from the current share price. This would take Valens from $2.22 all the way to $6.47. (See Valens stock analysis on TipRanks)MediPharm Labs (MEDIF)The largest company in the space is MediPharm Labs with quarterly revenues of C$31.4 million. In the quarter ended June 30, the company generated C$7.7 million of EBITDA for an impressive 24% EBITDA margin.Similar to the industry, MediPharm Labs is in the process of expanding extraction capabilities. The company recently reached 300,000 kg of extraction capacity with the plans to increase annual capacity to 500,000 kg via the expansion of the facility at the Barrie, Ontario headquarters.The company already has medical cannabis concentrate supply deals in both Germany and Australia making for a global play without all of the high costs of having massive global operations. In addition, MediPharm Labs has at least four large contracts with the likes of Canopy Growth and Cronos Group.MediPharm recently closed a $75 million bought deal financing to provide the capital needed for expansion while operations are expected to generate significant EBITDA in the coming year. At $3, the stock has a market valuation of only $385 million.The extraction-service provider is without question a Wall Street favorite, considering TipRanks analytics indicate MediPharm as a Strong Buy. Out of 5 analysts polled in the last 3 months, all 5 are bullish on the stock. With a return potential of about 120%, the stock's consensus target price stands at $6.41. (See MediPharm stock analysis on TipRanks)Neptune Wellness Solutions (NEPT)Neptune Wellness Solutions is the wildcard in the sector after generating a large C$6.5 million loss in the last quarter on only C$4.4 million in revenues. The company has big cannabis extraction plans, but the current results are less than impressive with revenues actually declining from last FQ1 levels.The company recently bought SugarLeaf Labs and Forest Remedies LLC for $18 million in upfront payments and up to another $132 million in cash and stock over the next three years. The extraction capacity of SugarLeaf is expected to reach 1,500,000 kg of biomass by the end of 2019. In addition, Canada operations expanded in September from 30,000 kg of biomass processing capacity to 200,000 kg annually.Recent deals with both Tilray and The Green Organic Dutchman should quickly expand revenues. The company forecasts the existing facilities will provide for annual revenues of $450 million at only 50% capacity with EBITDA margins of 40%.The biggest hiccup with Neptune is the unknown financials and the eventual requirement to pay up to another $132 million for SugarLeaf while the company only has a cash balance of $39 million in July.Neptune has a listed market value of $340 million, but the highest risk due to the financial position and cash outlays for SugerLeaf while being the only stock in the group generating current losses. Even worse, the CFO is leaving.What do analysts say about this extraction-services provider? TipRanks analytics show two bullish analysts who rate the stock a Buy, and the average price target among the two stands at $8.62 -- a whopping 148% upside. (See NEPT stock analysis on TipRanks)

  • Cannabis stocks rise for third straight day as vaping fears appear to ease

    Cannabis stocks rise for third straight day as vaping fears appear to ease

    Cannabis stocks rise for a third straight day Friday, buoyed by reports that vape sales are rebounding after being hit by the outbreak of a serious lung disease that experts say is directly tied to vaping.

  • Benzinga

    Valens GroWorks To Supply Shoppers Drug Mart With Cannabis Oil Products

    Valens GroWorks Corp. (TSXV: VGW) (OTC: VGWCF) said Monday it has signed a supply agreement with the Shoppers Drug Mart-owned medical cannabis e-commerce site Medical Cannabis by Shoppers for cannabis oil derivative products. Valens GroWorks Corp. is a vertically integrated cannabis company and the biggest third-party extraction company in Canada.

  • Why Medicare for all could 'dramatically' increase access to medical marijuana
    Yahoo Finance

    Why Medicare for all could 'dramatically' increase access to medical marijuana

    Medicare for all may not be just a Democratic talking point as the 2020 campaign kicks into high gear. It could also “dramatically” increase access to medical marijuana, according to Nicholas Vita, CEO of cannabis company Columbia Care.

  • Benzinga

    The Secret Sauce Behind The Best Performing Cannabis ETF In Canada

    Some of those may have gained their wealth through the Evolve Marijuana ETF (TSE:SEED) (OTC: EVVLF), which, in the last year, has delivered the best performance among all cannabis ETFs. Need more cannabis news? Evolve launched SEED on the Toronto Stock Exchange roughly 14 months ago.

  • The Single Most Important Thing HEXO Said in Its Third-Quarter Report
    Motley Fool

    The Single Most Important Thing HEXO Said in Its Third-Quarter Report

    Hint: It had nothing to do with the company's headline numbers.

  • Benzinga

    Cannabis Execs Pitch Investors In Toronto; iAnthus CFO Says Market Will Grow To Same Magnitude As Alcohol

    The cannabis industry is inevitably headed toward a reliance on oil-based products, said Everett Knight, executive vice president of strategy and investments at Valens Groworks Corp (OTC: VGWCF), a cannabis company focused on extraction, distillation and quality testing.

  • Benzinga

    What You Need To Know Ahead Of The 2019 Cannabis Capital Conference In Toronto

    Benzinga is all geared up to host its third rendition of the Cannabis Capital Conference , full of big-time investors, top industry executives and reporters from around the world. If you haven’t already ...

  • Market Exclusive

    Cannabis Stock News Daily Roundup February 27

    National Access Cannabis (TSXV: META), a health care service provider that specializes in prescribing medical cannabis, has appointed Michael Cosic as CFO and Lori Bailey as senior vice-president of retail. Lori has already joined the company while Michael will be joining on March 4, the company said in a statement. Current CFO Michael Best has […]The post Cannabis Stock News Daily Roundup February 27 appeared first on Market Exclusive.

  • Market Exclusive

    Valens Agrees to Provide Cannabis and Hemp Extraction Services to Tilray

    Valens GroWorks (CSE: VGW) (OTC: VGWCF) has agreed to provide cannabis and hemp extraction services to Tilray Canada Ltd. (NASDAQ: TLRY). Under a multi-year extraction services agreement, Valens will extract a minimum annual quantity of 15,000kg of dried cannabis and hemp. As part of the deal, Valens will receive and process the cannabis and hemp […]The post Valens Agrees to Provide Cannabis and Hemp Extraction Services to Tilray appeared first on Market Exclusive.