Photo: The Valens Company

Cannabis extraction results in concentrated oils that must undergo strict scientific testing for quality control.

A Kelowna cannabis company and leader in Canadian edibles manufacturing, LYF Food Technologies Inc. has been purchased by another Kelowna-based cannabis firm.

The Valens Company purchased LYF Food Technologies Inc. for $24.9 million in cash and stock, plus up to $17.5 million if certain milestones are achieved.

"LYF has set the standard of what high-quality edibles should be and has developed a diverse and flexible manufacturing platform to play a dominant role in the Canadian edibles market. LYF stood out for its product innovation and marketing teams, as well as its broad range of edible products which will introduce new formats to Canadian consumers that are typically only available in more mature markets," says Valens CEO, Tyler Robson.

Valens and LYF are located just minutes apart from each other, which brought the two companies together.

“As a fellow Kelowna-based company, Valens’ vision for global growth resonated with the team and ultimately led us to recognize the significant value in combining what we have each uniquely created to bring a new level of manufacturing excellence to Canada and beyond,” say LYF founders Paolo Pero and Matthew Amado.

Valens already has more than 77,000 square feet of licensed manufacturing space and the deal will give them an additional 10,500 square feet of production capacity at LYF's nearby facility.

The agreement will also allow Valens to produce new products including real fruit gummies, caramel filled bars, peanut butter cups, hard candies, granola products, and other customized baked goods.

The acquisition remains subject to approval from the Toronto Stock Exchange and customary conditions and approvals from senior lenders.