Valens stock is gaining momentum after The Valens Company (TSXV:VLNS) (OTCQX:VLNCF) received eligibility to become a Depository Trust Company.
Cannabis stocks endured a torrid year in 2019 due to a range of sector-wide issues, but over the past few weeks, The Valens Company proved to be one of the notable exceptions. In a new development, the extraction services company announced that it is now eligible to become a Depository Trust Company. It is a development that will surely be welcomed by investors. The company announced that it got the aforementioned DTC for its shares that are traded on the OTCQX. Valens stock trades on the exchange under the symbol VLNCF.
The company’s Chief Executive Officer, Tyler Robson, spoke of the ways in which the DTC eligibility is going to be helpful for the stock, explaining that, “Access to DTC’s platform not only brings us closer to increasing trading volume and liquidity in the United States but also allows us to reach new investors in larger markets who now can invest in our evolving business.” It is clearly a significant development, but it remains to be seen how Valens stock performs over the course of the coming days.
One of the most important things to point out with regards to Valens stock is the fact that it gained as much as 119% in 2019, thereby bucking the trend of the wider cannabis market. While the core cannabis market struggled, the extraction space enjoyed an excellent period owing to the launch of the cannabis derivatives market and the high demand for extraction services. The Valens Company has become one of the most popular extraction service providers in the industry, and in this regard, it should also be noted that the margins are generally higher in this niche.
Back in October, the company announced that it had generated C$16.5 million in revenue in the third quarter. It reflected a sequential rise of as much as 87%. The net income for the period stood at C$4.5 million.
At the time of writing, Valens stock is up 1% at $3.03.
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