Valens Company, Inc.

CIK:0001859902|SEC Filings

Consolidated Statements of Loss And Comprehensive Loss - CAD ($) $ in Thousands	12 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Disclosure of analysis of other comprehensive income by item [line items]
Revenue	$ 90,154	$ 86,059
Excise taxes	(11,979)	(2,281)
Net revenue	78,175	83,778
Cost of sales	56,705	46,942
Inventory valuation allowance	4,043	9,293
Loss on Onerous Contracts		1,819
Gross profit, excluding fair value items	17,427	25,724
Fair value changes on growth of biological assets	(168)
Realized fair value changes on inventory sold or impaired	(20)
Gross profit	17,239	25,724
Operating expenses
General and administrative	43,404	24,215
Selling and marketing	10,813	2,213
Depreciation and amortization	11,588	10,190
Share-based payments	4,633	9,777
Impairment loss	1,349	0
Restructuring charges	348
Operating expenses	72,135	46,395
Loss from operations	(54,896)	(20,671)
Other income (expense)
Financing costs, net	(1,502)	(901)
Remeasurement of contingent consideration	(547)
Foreign exchange gain (loss)	(80)	108
Joint venture termination cost		(931)
Gain (loss) on disposal of capital assets	40	(228)
Gain on marketable securities and derivatives	396	32
Other income	7
Other income (expense)	(592)	(1,920)
Loss before income taxes	(55,488)	(22,591)
Provision for (recovery of) income taxes
Current	(4,392)	(1,499)
Deferred	(2,062)	(410)
Income taxes	(6,454)	(1,909)
Loss for the year	$ (49,034)	$ (20,682)
Basic loss per common share	$ (0.88)	$ (0.49)
Diluted loss per common share	$ (0.88)	$ (0.49)
Other comprehensive income
Foreign currency translation income, net of tax	$ 2,573
Comprehensive loss for the year	$ (46,461)	$ (20,682)
Weighted average number of common shares outstanding
Basic	55,490,303	42,518,342
Diluted	55,490,303	42,518,342
Canada
Disclosure of analysis of other comprehensive income by item [line items]
Net revenue	$ 67,206	$ 83,642
Gross profit	10,514	25,725
Operating expenses
Operating expenses	61,599	46,254
Loss from operations	(51,085)	(20,529)
Provision for (recovery of) income taxes
Loss for the year	(46,207)	(20,540)
United States and International
Disclosure of analysis of other comprehensive income by item [line items]
Net revenue	10,969	136
Gross profit	6,725	(1)
Operating expenses
Operating expenses	10,536	141
Loss from operations	(3,811)	(142)
Provision for (recovery of) income taxes
Loss for the year	(2,827)	(142)
Domestic
Disclosure of analysis of other comprehensive income by item [line items]
Net revenue	67,206	83,642
Foreign
Disclosure of analysis of other comprehensive income by item [line items]
Net revenue	$ 10,969	$ 136

Consolidated Statements of Cash Flows - CAD ($) $ in Thousands	12 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
OPERATING ACTIVITIES
Loss for the year	$ (49,034)	$ (20,682)
Adjustment for non-cash items:
Depreciation and amortization	13,707	10,765
Share-based payments	4,633	9,777
Inventory valuation allowance	4,043	9,293
Fair value changes on growth of biological assets and inventory sold	188
Loss on onerous contracts		1,819
Impairment loss on trade receivables	1,005	571
Provision (recovery) for income taxes	(6,454)	(1,909)
Interest expense on lease liability	254	175
Accretion	1,079	712
Foreign exchange (gain) loss	80	(173)
Interest income on promissory note receivable	(217)	(82)
Loss (gain) on disposal of capital assets	(40)	228
Gain on marketable securities and derivatives	(396)	(32)
Gain on remeasurement of contingent consideration	(547)
Working capital adjustments:
Trade and other receivables	(2,038)	5,605
Prepaid expenses and other current assets	1,666	(6,212)
Inventory and biological assets	(29,740)	(16,505)
Contractual obligation	(2,178)	(964)
Accounts payable and accrued liabilities	16,339	(2,435)
Income taxes (paid) recovered	784	(5,603)
Operating activities	(46,866)	(15,652)
INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(16,586)	(23,419)
Acquisition of intangible assets	(191)	(7,921)
Purchase of marketable securities and derivatives	(3,000)
Repayment of promissory note receivable	1,635	1,033
Proceeds from sale of capital assets	178	117
Proceeds from sale of marketable securities and derivatives	1,427
Issuance of promissory note receivable	(755)	(1,000)
Proceeds from redemption of GIC		8,500
Investing activities	(35,401)	(22,690)
FINANCING ACTIVITIES
Proceeds from term loan, net of deferred finance costs		19,337
Proceeds from bought deal, net of share issue costs	79,922
Proceeds from exercise of warrants	19	518
Proceeds from exercise of stock options	2,142	328
Payment on exercise of RSUs	431	261
Payment to settle obligation to issue shares	(348)
Repayments of term loan	(2,304)	(10,500)
Purchase of shares under normal course issuer bid		(98)
Payments on lease liability	(1,093)	(526)
Financing activities	77,907	8,798
Effect of exchange rate changes on cash	69
CHANGE IN CASH	(4,291)	(29,544)
Cash, beginning of year	20,344	49,888
Cash, end of year	16,053	$ 20,344
LYF
INVESTING ACTIVITIES
Acquisition	(3,713)
GR
INVESTING ACTIVITIES
Acquisition	(15,751)
CS
INVESTING ACTIVITIES
Acquisition	$ 1,355

Consolidated Statements of Financial Position - CAD ($) $ in Thousands	Nov. 30, 2021	Nov. 30, 2020
Current
Cash	$ 16,053	$ 20,344
Marketable securities and derivatives	3,072	1,032
Trade and other receivables	28,611	27,544
Prepaid expenses and other current assets	16,261	12,530
Promissory note receivable	87	1,409
Income tax receivable	4,430	1,236
Indemnity assets	11,368
Inventory	42,039	14,383
Biological assets	227
Current assets	122,148	78,478
Non-Current
Property, plant and equipment	77,411	53,156
Intangible assets	91,903	31,819
Goodwill	53,222	4,123
TOTAL ASSETS	344,684	167,576
Current
Accounts payable and accrued liabilities	36,926	14,396
Term loan and other debt - current	9,723	2,025
Contractual obligation - current	1,817	1,660
Lease liabilities - current	1,406	547
Contingent consideration - current	761
Onerous contract provision		819
Other liability	11,368
Income taxes payable		414
Current liabilities	62,001	19,861
Non-Current
Term loan and other debt	16	6,913
Contractual obligation	7,062	9,041
Lease liabilities	4,238	3,903
Contingent consideration	1,857
Deferred tax liability	10,072	472
Liabilities	85,246	40,190
Shareholders' equity
Share capital	336,097	162,585
Reserves	25,122	19,651
Obligation to issue shares	1,463	1,933
Accumulated other comprehensive income	2,573
Deficit	(105,817)	(56,783)
Shareholders' equity	259,438	127,386
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 344,684	$ 167,576