KELOWNA, BC, April 25, 2019 /PRNewswire/ - Valens GroWorks Corp. (CSE: VGW, OTC: VGWCF) (the "Company" or "Valens"), a multi-licensed, vertically integrated provider of cannabis products and services focused on various proprietary extraction methodologies, distillation, cannabinoid isolation and purification, as well as associated quality testing is pleased to announce that it has entered into an arm's length binding multi-year extraction services agreement (the "Agreement") to provide cannabis and hemp extraction services to HEXO Corp ("HEXO") (TSX:HEXO) (NYSE-A: HEXO), a leading cannabis producer and consumer packaged goods cannabis company.
The Agreement has an initial 2-year term from the date of the first shipment, with HEXO supplying Valens with an annual minimum of 30,000kg in the first year and 50,000kg in the second year of cannabis and hemp biomass. Valens will process this material on a fee for service basis into premium quality resins and distillates using the Company's leading proprietary extraction processing methods. The Agreement contains provisions under which it may be terminated with 90 days written notice after the one-year anniversary. Valens expects to receive and begin processing the first shipment from HEXO early in Q3 of 2019 and currently holds all required licensing from Health Canada to carry out its obligations under the Agreement.
"HEXO is pleased to work with a quality organization like Valens. On the eve of edibles and concentrate legalization in Canada, this agreement will allow our company to bring an expanded offering to market, creating innovative products to deliver exceptional cannabis experiences to consumers," said James McMillan, Vice-President of Strategic Business Development at HEXO Corp.
"As the cannabis market continues to evolve with the pending legalization of additional auxiliary products later this year, we are honoured to be recognized by the leaders in the industry like HEXO, for our best in class extraction capabilities to allow them to capitalize on these markets," said Tyler Robson, CEO of Valens GroWorks. "We look forward to working closely with the team at HEXO as they continue to bring high quality, innovative products to market."
HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and distributes prize-winning products to serve the global cannabis market. Through its hub and spoke business strategy, HEXO Corp is partnering with Fortune 500 companies, bringing its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to established companies, leveraging their distribution networks and capacity. As one of the largest licensed cannabis companies in Canada, HEXO Corp operates with 1.8 million sq. ft of facilities in Ontario and Quebec and a foothold in Greece to establish a Eurozone processing, production and distribution centre. The Company serves the Canadian adult-use and medical markets. For more information please visit hexocorp.com.
About Valens GroWorks
Valens GroWorks Corp. is a research-driven, vertically integrated Canadian cannabis company focused on downstream secondary extraction methodology, distillation and cannabinoid isolation and purification, as well as associated quality testing with three wholly-owned subsidiaries located in and around Kelowna, BC. Subsidiary Valens Agritech ("VAL") holds a license to cultivate cannabis and produce cannabis oil under the Cannabis Act, as well as a license to conduct analytical testing for the cannabis industry. VAL currently has extraction processing and supply agreements with various leading producers across Canada. Subsidiary Valens Labs is a Health Canada licensed ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant Based Science. Subsidiary Valens Farms is in the process of becoming a purpose-built facility in compliance with European Union (EU) Good Manufacturing Practices (GMP) standards, ensuring the product from this facility can be exported anywhere in the world where Cannabis is nationally legal for medical or adult usage purposes. For more information, please visit http://valensgroworks.com. The Company's investor deck can be found specifically at http://valensgroworks.com/investors/
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SOURCE Valens GroWorks Corp.