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Broker Date Rating Target (C$) Commentary

AltaCorp Capital Inc. June 11, 2019 Outperform $8.00

"Within the cannabis sector and amongst all companies we have seen, we forecast that Valens will generate one of the most attractive EBITDA margin profiles. Based on our forecasted financial performance, Valens offers a very attractive opportunity to invest in what we believe is an undervalued and uniquely positioned business."

Haywood Securities Inc. June 11, 2019 Buy $7.00"The company has executed a number of processing and product development agreements with some of the larger LPs in the Canadian landscape that we believe will drive meaningful revenue and EBITDA growth over the course of 2019 and into 2020."

Mackie Research Capital Corp. Apr 25, 2019 Buy $6.75"[Valens'] strong cash position will allow the company to increase extraction capacity at its Kelowna facility, strategically increase its domestic geographic presence and address potential working capital requirements."

GMP Securities July 26, 2019 Buy $10.00"Valens presents investors with an opportunity to gain exposure to a rapidly growing industry very early in its development cycle [with] strong growth expected, attractive valuation, and readiness for edibles market."

Eight Capital July 25, 2019 Buy $8.25“Valens is trading at a steep discount to Canadian LPs; valuation gap should narrow as company continues to deliver on its extraction agreements. Extraction will be in high demand as additional cultivation comes online, with Valens poised to be a leading player.”

(In CAD$MM, unless otherwise noted)Share Price: As of 30th of June 2019 $3.68

Basic Shares O/S 122.6 Fully Diluted Shares O/S 140.1

Equity Value $515.6 Cash and Cash Equivalents $70.2ITM Securities $6.1 Debt $0.0

Enterprise Value $439.3

Financials (Based on Analyst Estimates) CY2019 CY2020 CY2021Revenue $50.2 $162.1 $218.1 Adjusted EBITDA $16.7 $74.1 $103.2

Trading Multiples CY2019 CY2020 CY2021EV/Revenue 8.7x 2.7x 2.0xEV/ Adjusted EBITDA 26.3x 5.9x 4.3x

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Source: Company Filings, S&P Capital IQ, AltaCorp Capital

As of July 31st, 2019; shares outstanding based on most recent quarterly financials and adjusted for share issuance transactions and other significant publicly disclosed transactions; presented as fully diluted with all in-the-money securities added to the equity value and cash proceeds added to diluted cash balance; N/D = Not Disclosed (1) Based on Analyst consensus estimates; (2) Valen's financial estimates are based on November 30th

fiscal year-ends rather than calendar year-ends

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Share Equity Total Enterprise Revenue(1) EBITDA(1) EV/Revenue EV/EBITDA

Price Value Debt Value CY2019E CY2020E CY2021E CY2019E CY2020E CY2021E CY2019E CY2020E CY2021E CY2019E CY2020E CY2021E

Canadian Large Cap Companies (C$) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (x) (x) (x) (x) (x) (x)

Canopy Growth Corporation $43.27 $16,300 $615 $12,856 603.7 1,171.3 1,929.6 (307.1) (55.9) 307.8 21.3 11.0 6.7 NMF NMF 41.8

Aurora Cannabis Inc. $8.24 $8,843 $834 $8,914 494.2 994.7 1,866.1 (22.8) 227.7 571.4 18.0 9.0 4.8 NMF 39.2 15.6

Tilray, Inc. $53.65 $5,637 $624 $5,718 178.0 363.7 547.3 (46.6) 20.2 127.6 32.1 15.7 10.4 NMF >100.0x 44.8

Aphria Inc. $7.16 $1,826 $537 $1,621 463.2 786.8 N/A 16.4 138.9 169.2 3.5 2.1 N/A 98.6 11.7 9.6

HEXO Corp. $5.58 $1,714 $34 $1,413 178.3 424.1 615.2 4.3 95.3 171.8 7.9 3.3 2.3 >100.0x 14.8 8.2

OrganiGram Holdings Inc. $7.85 $1,295 $49 $1,226 134.6 236.1 329.0 51.6 92.7 130.9 9.1 5.2 3.7 23.8 13.2 9.4

Cronos Group Inc. $18.17 $3,552 $0 $1,093 50.2 177.2 332.8 (34.4) 52.8 98.4 21.8 6.2 3.3 NMF 20.7 11.1

Mean 16.3 7.5 5.2 61.2 19.9 20.1 Canadian Mid Cap Companies

The Green Organic Dutchman Holdings Ltd. $3.02 $956 $1 $618 43.6 272.6 517.2 (33.8) 84.4 151.1 14.2 2.3 1.2 NMF 7.3 4.1

The Flowr Corporation $4.91 $571 $13 $521 28.1 49.2 146.9 2.0 11.9 54.7 18.5 10.6 3.5 >100.0x 43.7 9.5

The Supreme Cannabis Company, Inc. $1.36 $501 $100 $508 83.0 157.0 N/A 12.7 40.9 N/A 6.1 3.2 N/A 40.1 12.4 N/A

Emerald Health Therapeutics, Inc. $2.06 $299 $0 $274 25.8 42.4 85.9 (28.2) (13.6) 9.0 10.6 6.5 3.2 NMF NMF 30.5

Mean 12.4 5.6 2.6 40.1 21.2 14.7 Canadian Small Cap Companies

WeedMD Inc. $1.56 $185 $35 $196 41.6 132.6 161.7 (3.5) 46.6 37.0 4.7 1.5 1.2 NMF 4.2 5.3

VIVO Cannabis Inc. $0.48 $143 $38 $107 33.6 88.6 230.7 (14.1) (1.7) 18.5 3.2 1.2 0.5 NMF NMF 5.8

Delta 9 Cannabis Inc. $0.97 $87 $27 $102 41.9 91.2 140.9 (0.8) 20.7 37.1 2.4 1.1 0.7 NMF 4.9 2.7

Harvest One Cannabis Inc. $0.53 $114 $2 $90 36.9 101.2 N/A 2.0 25.9 N/A 2.4 0.9 N/A 46.1 3.5 N/A

48North Cannabis Corp. $0.82 $151 $0 $80 47.3 106.1 125.8 (1.5) 9.9 19.8 1.7 0.8 0.6 NMF 8.1 4.0

James E. Wagner Cultivation Corporation $0.57 $57 $8 $54 25.1 N/A N/A (1.9) N/A N/A 2.1 N/A N/A NMF N/A N/A

Westleaf Inc. $0.44 $66 $5 $52 8.0 115.9 199.5 (9.6) 17.6 47.3 6.5 0.5 0.3 NMF 3.0 1.1

Mean 3.3 1.0 0.7 46.1 4.7 3.8 Canadian Extraction Companies

MediPharm Labs Corp. $5.49 $797 $26 $687 110.7 198.6 295.2 26.2 64.4 90.9 6.2 3.5 2.3 26.2 10.7 7.6

Neptune Wellness Solutions Inc. $7.55 $769 $4 $702 57.7 155.0 229.9 15.1 54.5 93.0 12.2 4.5 3.1 46.5 12.9 7.6

Valens Groworks Corp.(2) $3.68 $516 $0 $439 50.2 162.1 218.1 16.7 74.1 103.2 8.7 2.7 2.0 26.3 5.9 4.3

Radient Technologies Inc. $0.76 $223 $7 $208 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Mean 9.0 3.6 2.5 33.0 9.8 6.5 Mean - All 10.2 4.6 2.9 43.9 13.5 12.4

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