The Valens Company Inc (TSE:VLNS) (OTCQX:VLNCF) revealed on Friday that 56 white label and custom manufacturing product stock keeping units (SKUs) were produced in the third quarter of 2020, a 56% jump, compared to 36 SKUs in the second quarter.
The Kelowna, British Columbia-based manufacturer of cannabinoid-based products, said the 56 SKUs were made in partnership with over ten of the company's customers and span four of its product categories, with formats ranging from disposable vapes, vape cartridges, oils and oral sprays, to beverages and concentrates.
Valens chalked up the surge in manufacturing to new brand partnerships and custom manufacturing agreements in the third quarter, in addition to the fulfillment of existing contracts for oil-based products in the Canadian market.
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Three product SKUs were developed as part of a distribution agreement with Australia's largest medicinal cannabis distributor and clinical research organization, Cannvalate. They included a 1:20 CBD oil, 10:10 oil, and 1:10 CBD oil. The orders were shipped after successful product stability testing and receipt of shipping permits, marking The Valens Company's first shipment to the Australian market. The company expects to make an additional shipment of oils to Australia within the next few weeks, contingent to shipping permit approvals.
"In the third quarter, Valens manufactured the widest range and highest number of oil-based products in partnership with some of the most prominent brands, companies and distributors in the cannabis space on a domestic and international scale," said Valens CEO Tyler Robson.
"As a result of the challenging extraction environment discussed in the second quarter, we have accelerated our custom manufacturing and white label services footprint, allowing the company to improve efficiencies and increase its production and manufacturing resources.”
The Valens boss said that as the company advances its product development capabilities, producing “a bespoke portfolio across all oil-based product categories” it will serve as a “key differentiator” for the business as Valens works to enter “new strategic partnerships globally."
Separately, Valens said financial information for the third quarter is currently being finalized and will to be released around mid-October.
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