- Valens to produce a minimum of 2.2 million vape pens on
behalf of BRNT Ltd. for the Canadian market over an initial two
year term
- Largest publicly announced multi-year white label agreement
to date for a branded finished product in the Canadian cannabis
industry
- Gross revenue potential to Valens under the Agreement of
over $50 million in the first two
years, subject to final acceptance from provincial distributors,
including of the proposed price per unit.
KELOWNA, BC, Oct. 30, 2019 /CNW/ - Valens GroWorks
Corp. (TSXV: VGW) (OTCQX: VGWCF) (the "Company" or
"Valens"), a vertically integrated provider of industry
leading extraction products and services; including a diverse suite
of extraction methodologies, next generation cannabinoid delivery
formats and an ISO 17025 accredited analytical lab is pleased to
announce a multi-year white label agreement (the
"Agreement") with BRNT Ltd ("BRNT"), a leading,
premium, cannabis ancillary company to launch a line of unique
cannabis vape pens in Canada.
Under the terms of the Agreement, Valens will provide high-quality
cannabis extracts, filling services and national distribution of a
line of custom-formulated BRNT-branded vape pens.
White Label Agreement
The initial term of the Agreement will be for two years, with
two successive one year renewal options, and relates to the
production and sale of a guaranteed minimum of 2.2 million
BRNT-branded vape pens, with the gross revenue potential to Valens
under the Agreement of over $50
million in the first two years, all subject to final
acceptance from provincial distributors, including of the proposed
price per unit. Under the terms of the Agreement, the two parties
will split economics through a profit share structure reflective of
the respective efforts of each party. Valens expects the
first shipment under the Agreement to take place in the first
fiscal quarter of 2020. The Company currently holds all required
licensing from Health Canada to carry out its obligations under the
Agreement.
BRNT is known for its rapid national growth, brand quality,
industry experience and commitment to product excellence. BRNT
currently participates in the ancillary products sector providing
premium, high-quality cannabis accessories that are currently
available in over 170 stores across Canada with international expansion underway
including its newest line, Made By: a line of single-source
cannabis extract vaporizers with uniquely designed hardware.
"As Valens begins official production of next generation
products for Cannabis 2.0, we are excited to be collaborating with
BRNT to bring to market a line of differentiated, high quality,
concentrate vape products for Canadian consumers", said
Tyler Robson, CEO of Valens
GroWorks. "BRNT has shown impressive sales growth and market
understanding through its ancillary offerings. In pairing their
retail and product knowledge with Valens' processing and product
development capabilities we believe this provides a solid
foundation to provide a product with strong consumer appeal."
"Valens has demonstrated a commitment to cannabis
extraction on a global scale that is driven by passion and quality.
It was a natural fit for BRNT to collaborate with Valens to bring
the Made By vaporizers brand to life with a partner that can mirror
our globally recognized signature design aesthetic and brand
development capabilities," said Simon Grigenas, CEO of BRNT Group.
"BRNT and Valens are setting a new industry standard by creating
meaningful brands and products through a focused, profitable
approach, as opposed to the traditional vertical integration seen
today."
About BRNT Group
BRNT Group is a Canadian cannabis design house known for its
highly creative and authentic brands which have attracted a
steadfast and loyal following around the world. Under the BRNT
Group portfolio is BRNT Designs, a luxe cannabis accessories brand
that has reimagined and redefined consumption, storage, and
preparation accessories for dried cannabis. BRNT Designs has
blended aesthetics with functionality to create innovative cannabis
accessories. The second and newest brand, Made By, leverages artist
collaborations for its hardware design and its highly-curated
collection of cannabis extract formulations. Made By ready-to-go
vaporizers are set to revolutionize the cannabis experience when
they launch across Canada in
2020.
With the expansion of BRNT Designs into international markets,
and the announcement of the creator-focused brand Made By, the BRNT
Group continues to generate global buzz with its mission to
de-stigmatize the cannabis experience and set the benchmark for
creativity through brand design and technology.
http://www.brntgroup.com
About Valens GroWorks
Valens GroWorks Corp. (TSXV:VGW) (OTCQX:VGWCF) is a
multi-licensed, vertically-integrated cannabis company focused on
being the partner of choice for leading Canadian and international
cannabis brands by providing best-in-class, proprietary services
including CO2, ethanol, hydrocarbon, solvent-less and terpene
extraction, analytical testing, formulation and white label product
development. Valens is the largest third-party extraction
Company in Canada with an annual
capacity of 425,000 kg of dried cannabis and hemp biomass at our
purpose-built facility in Kelowna,
British Columbia which is in the process of becoming
European Union (EU) Good Manufacturing Practices (GMP)
compliant. Additionally, our 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. For
more information, please visit http://valensgroworks.com. The
Company's investor deck can be found specifically at
http://valensgroworks.com/investors/.
Notice regarding Forward Looking Statements
This news release contains certain "forward-looking statements"
within the meaning of such statements under applicable securities
law. Forward-looking statements are frequently characterized by
words such as "anticipates", "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed", "positioned" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout
this news release. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The Corporation is under no obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law.
The TSXV or other regulatory authority has not reviewed,
approved or disapproved the contents of this press release. We seek
Safe Harbour.
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SOURCE Valens GroWorks Corp.