Regulatory Compliance and Changes: Valens operates in highly regulated industries, including cannabis and health products. Changes in laws, increased scrutiny, or failure to comply with complex and evolving regulations could result in penalties, license revocation, or significant operational disruptions.

Intense Market Competition: The health and wellness, and particularly the cannabis product market, is highly competitive. Valens faces significant competition from both established players and new entrants, which could pressure pricing, reduce market share, and impact profitability.

Product Liability and Safety Concerns: As a manufacturer of consumable health and wellness products, Valens faces inherent risks of product defects, contamination, mislabeling, or adverse health effects, which could lead to costly litigation, product recalls, and severe reputational damage.