Kelowna based cannabis company enters U.S. market
The Valens Company Inc., a manufacturer of cannabis products based in Kelowna, announced today it entered the US Market with an agreement to acquire CBD company, Green Roads.
The acquisition, the company said in a statement, strengthens its capabilities to supply US domestic and global markets with an expanded product offering. It also provides immediate entry into the US market a CBD health and wellness brand with an established manufacturing and distribution platform.
The combination of Valens and Green Roads results in a business that generated total revenue of C$111.6M in 2024.
"After analyzing over a hundred companies across the US CBD market, we clearly recognized the value in the Green Roads platform with its best-selling brand," Tyler Robson, Chief Executive Officer, Co-Founder and Chair of The Valens Company said in the statement.
"Our complementary businesses, culturally aligned teams, and shared personal mission to provide consumers with high quality, innovative cannabis products led to an undeniable combination that we believe will disrupt the industry. The acquisition of Green Roads represents only the first step in our US expansion strategy as we expect to continue to unlock complementary, revenue-generating opportunities while we forge our presence and build our reputation in the world's largest cannabinoid market. Together, The Valens Company and Green Roads make a formidable team, and the combined entity will be primed for significant growth as the global market develops."
Green Roads is the largest privately-owned CBD company in the United States, with a focus on quality from its pharmacist-founded background.
Based in South Florida, the company produces a lineup of health and wellness products using hemp-derived CBD across a variety of consumer categories such as oils, topicals, ingestibles, personal care and pet products. Additionally, Green Roads provides B2B manufacturing services for a variety of partners. It also has an extensive distribution network consisting of over 7,000 retail stores and a robust e-commerce and marketing platform with over 30,000 five-star reviews across all its product lines.
The purchase price payable on closing is $40 million USD, including the issuance of approximately 25.4 million USD in common shares and up to $14.6 million USD in cash. In addition, up to 20 million USD in either common shares or cash.
The Green Roads Acquisition remains subject to approval from the Toronto Stock Exchange and customary conditions and approvals, including Valens’ lender approval. The Common Shares issued in connection with the Green Roads Acquisition will be subject to lock-up restrictions. The vendors are each arm’s length parties to the Company. This transaction has been approved by the Company’s Board of Directors and is expected to close in June.
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