- Rebrand provides strategic clarity on Company's position as
a global leader in the end-to-end development and manufacturing of
cannabinoid-based products
- Solidifies the Company's evolution in expertise, from
extraction to innovative, next generation products focused on
delivering customized user experiences
- Signals commitment to enter high-value international markets
in 2020
- Entered into a multi-year manufacturing agreement and
secured cGMP certified licensed space to satisfy strong near-term
demand and pursue numerous opportunities for international product
sales
KELOWNA, Dec. 17, 2019 /CNW/ - Valens GroWorks
Corp. (TSXV: VGW) (OTCQX: VGWCF) (the "Company"
"Valens" or "The Valens Company"), 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, announced today that it is rebranding to
'The Valens Company,' and effective at market open on December 19, 2019, will trade on the TSXV under
the ticker VLNS. The rebrand solidifies the Company's focus
on the development and manufacturing of innovative cannabis
products and marks its commitment to enter high-value international
markets in 2020.
"The introduction of our new parent company brand, The Valens
Company, on the eve of Cannabis 2.0, is a reflection of our growth
and transformation over the past few years," said Tyler Robson, CEO. "Valens is best known as a
leader in extraction, but we are much more than that. After years
of research, product development, technology acquisitions and more,
we are thrilled to introduce the next phase of growth for our
company. This phase will solidify our position as an international
leader in the end-to-end development and manufacturing of
cannabinoid-based products. As we look ahead to 2020, we are
energized by the tremendous opportunities in the market and excited
to go into the new year as The Valens Company."
Strategic Clarity on Company's Position as Global
Leader in End-to-End Development of Cannabis and Hemp-based
Products
The Company is also refining its branding to better reflect its
position as a global leader in cannabis product development and
manufacturing. While Valens' iconic logo will remain unchanged,
effective at the start of trading on December 19, 2019, the Company's stock ticker
will be "VLNS" on the TSXV (with its ticker changing on the OTCQX
once final regulatory approvals are received). Valens
also expects to formally change its name in due course.
Evolution in Expertise: From Extraction to Full Product
Development
Having already established itself as the leader in extraction,
the rebrand marks The Valens Company's evolution to a
cannabinoid-based product development and manufacturing company,
strategically positioned to capitalize on both "Cannabis 2.0" in
Canada as well as a wealth of
international opportunities. Valens has been preparing heavily
for the new wave of legalization by building a portfolio of
innovative manufacturing and end-product technologies to help its
customers offer customized user experiences and differentiate their
products in the market. In a short period of time, Valens has
become a one-stop shop for licensed producers as well as CPG and
pharma companies in providing the broadest product and service
offerings in the Canadian market.
The Company currently offers a wide range of product formats,
including tinctures, two-piece caps, soft gels, oral sprays and
vape pens as well as beverages, concentrates, topicals, edibles,
injectables, natural health products and expects to have more
innovative products coming to the Canadian market in
2020.
A Leader in Safe, Reliable Oil Derivatives to Support 2.0
Rollout for Customers
As the industry develops domestically and internationally,
Valens has prioritized acquiring and developing safe and
differentiated technologies in order to facilitate high quality oil
outputs for delivery methods such as vaping and ingestible
products. In the case of beverages and edibles, for example, this
includes the international rights to a leading emulsion technology,
SōRSE, which the Company believes will transform the way consumers
experience ingested cannabis. For vaping oils, Valens has proven to
be an important ally to its clients in this highly monitored
sector, utilizing its breadth of extraction and formulation
techniques to create, cannabis-derived oils that not only meet the
health standards required but allow customers to differentiate its
offerings and experiences for their targeted consumers.
GMP Product Capabilities
Valens has entered into a multi-year manufacturing agreement
with a Health Canada licensed party that provides the Company with
additional licensed capacity to support its overwhelming demand for
white label product development services. Under the terms of the
agreement, an initial 5,000 square feet has been allocated to
Valens operations with a total of up to 50,000 square feet being
made available subject to the counterparty receiving the required
Health Canada licence amendment. The licensed space is cGMP
certified in Canada and provides a
second channel for exportation of Valens GMP certified products
early in 2020. The Company expects to utilize the space in a
variety of ways as needed, including beverages, edibles, topicals
and storage.
Commitment to Enter High-Value International Markets
With over 100 years of combined extraction experience and years
of extraction equipment and product formulation advancements under
its belt, The Valens Company has developed significant intellectual
property and built a global reputation for high quality products
that are in demand in legal markets around the world.
Simultaneously, the Company has been building its domestic
state-of-the-art facilities, including proprietary equipment and
technologies, with the goal to effectively transplant similar
operations to high-value international markets starting in
2020.
Valens Farms Joint Venture Terminated
In conjunction with Valens' rebrand and strategic evolution away
from cultivation, the Company has terminated its joint venture
agreement with Kosha Projects Inc. ("Kosha") to create the Valens
Farms facility originally announced on April
11, 2018.
Subsequent to entering into the arms length joint venture
agreement with Kosha, one of the partners joined the board of
directors of the Company, creating a related party
relationship. As a result, in connection with the termination
of the joint venture, the Company engaged an independent advisor,
to review certain costs incurred by Kosha, its subcontractors and
Valens on the project. The objective of this review was to
provide information to the Company for it to determine that the
final settlement in the amount of $931,194 for the termination of the agreement
included only those costs that were incurred on the project.
Based on the independent review process followed, the board of
directors (the Company's director associated with Kosha
abstaining), determined that the final settlement amount was
reasonable.
About The Valens Company
The Valens Company is a global leader in the end-to-end
development and manufacturing of innovative, cannabinoid-based
products. The Company is 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 and
manufacturing. 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. The Valens Company currently offers a wide range
of product formats, including tinctures, two-piece caps, soft gels,
oral sprays and vape pens as well as beverages, concentrates,
topicals, edibles, injectables, natural health products and has a
strong pipeline of next generation products in development for
future release. Finally, the Company's wholly-owned
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://thevalenscompany.com. The Company's investor deck can
be found specifically at http://thevalenscompany.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.