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For Immediate Release THE VALENS COMPANY October 13 , 2021 The Valens Company Reports Financial Results for The Third Quarter of Fiscal 2021 Provincial sales net revenue increased 20.0 % quarter over quarter supported by a 76.5 % quarter over quarter increase in consumption - level retail sales according to Hifyre¹ Canada - wide provincial listings increased 37.1 % to 181 at the end of Q3 2021 , compared to 132 at the end of Q2 2021 with an additional 27 accepted subsequent to quarter end Beverage market share increased to 9.0 % in Q3 2021 vs 8.0 % in Q2 20211 Gross margin increased to 26.8 % in Q3 2021 from 22.0 % in Q2 2021 B2C revenue lines of provincial sales and Green Roads accounted for -50.0 % of net revenue in Q3 2021 , which is expected to increase following the close of the Citizen Stash acquisition Kelowna , B.C. , October 13 , 2021 - The Valens Company Inc. ( TSX : VLNS ) ( OTCQX : VLNCF ) ( the " Company " , " The Valens Company " or " Valens ” ) , a leading manufacturer of cannabis products , is pleased to report its third quarter financial results for the period ended August 31 , 2021 . Tyler Robson , Chief Executive Officer , Co - Founder and Chair of The Valens Company , said : " We are very pleased with the progress we have made on our strategic initiatives to transform Valens into a leading cannabis consumer packaged goods company . Our innovative product launches have driven growth in provincial listings and we are only just beginning to see the resulting financial impact with provincial sales net revenue growing 20 % quarter over quarter . More importantly , consumer demand for our products is very strong , leading to even greater growth in consumption- level retail sales for Valens products which were up 76.5 % quarter over quarter . The combination of net revenue from provincial sales and the partial quarter of revenue contribution from Green Roads represented 50 % of total net revenue in Q3 2021 , further illustrating the early progress on our strategic initiatives . We expect these B2C revenue lines to continue growing in future quarters as previously announced new listings are launched in market and gain commercial traction and the successful closing of the Citizen Stash acquisition adds dried flower revenue to our portfolio . Valens is now present in seven provinces and will span nine provinces and territories across Canada assuming the successful closing of the Citizen Stash acquisition . " Robson continued , " With our operational platform largely built and a critical mass of provincial listings now in place , our focus has shifted to operational efficiencies , implementation of automation initiatives and volume growth to drive margin improvement and positive EBITDA in future quarters . During the third quarter , we strategically transitioned away from smaller , underperforming B2B partners resulting in a 29 % decrease in B2B LP sales revenue quarter over quarter . We have instead taken a fewer , bigger , better approach and focused on building deeper relationships with larger licensed producer partners to drive efficiencies and profitable growth . This is illustrated by the addition and expansion of six custom manufacturing agreements , three of which are with the top seven licensed producers by market share . We expect these agreements to begin generating revenue over the next two quarters with further growth expected to follow . We remain customer focused and are looking for consistent and higher volume partnerships that drive profitability for all parties . " Key Highlights • Gross revenue increased 32.7 % in Q3 2021 to $ 24.6 million , compared to $ 18.5 million in Q3 2020 The Valens Company 230 Carion Rd Kelowna , BC V4V 2K5 T. +1.778.755.0052 www.thevalenscompany.com 1 | Page