Valens GroWorks Corp VGW VGWCF a cannabinoid extraction company, guided Monday to fourth-quarter revenue of between CA$27 million and CA$30 million ($20 to $23 million), almost double what the company posted in the third quarter.
Valens said it intends to initiate a normal course issuer bid for for the purchase and cancellation of up to 6,275,204 of its common shares or 5% of the issued and outstanding shares as calculated on a non-diluted basis.
The NCIB will be supported with liquidity and positive cash flow, according to the cannabis company.
Valens anticipates total extraction of more than 24,400 kg of cannabis in the fourth quarter.
"This is roughly in-line with the amount of biomass processed in Q3 2019 and reflects the anticipated shift in focus to white label manufacturing and the demand from our customers to launch a breadth of 'Cannabis 2.0' products into the market," according to the company.
"This breadth of products translated into smaller lot sizes and resulted in a temporary pause from the volume ramp seen in previous quarters but also resulted in a significant increase in our revenue per gram of input performance."
Valens shares were trading 0.43% higher at $2.34 at the time of publication.
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