Canopy Growth in multi-year extraction agreement with Valens GroWorks
Canopy Growth (TSX:WEED; NYSE:CGC) entered into a multi-year extraction agreement with Valens GroWorks (CSE:VGW; OTC:MYMSF), a licensed provider of cannabis products and services focused on various extraction methodologies, distillation, cannabinoid isolation and purification.
Under the multi-year accord, Valens will use its proprietary technology and methodologies to process Canopy’s whole flower and trim into high-grade cannabis resin. Canopy expects the first shipment of product for extraction will occur before the end of December 2018.
Valens previously joined Canopy's CraftGrow program in October 2017. CraftGrow provides craft cannabis producers with the opportunity to bring unique cannabis products to market through Canopy’s sales channels. Having recently received its cultivation licence, Valens expects to have its first branded products available via CraftGrow for the medical and recreational markets by the end of March 2019.
"Diversifying our extraction supply capabilities with Valens, a company positioning itself as a specialized extractor, increases our ability to supply a consistent, high-quality inventory of oils for products such as Softgels," Mark Zekulin, president & co-CEO of Canopy, said in a statement.
"We're also excited to see Valens progress in its licensing capabilities so that it can add its products to our CraftGrow program, increasing the diversity of high-quality cannabis products available for medical and recreational customers in 2019," he added.
Tyler Robson, CEO of Valens GroWorks, said the company takes pride in its extraction processes to support the growth of the cannabis market, particularly with the increasing role cannabis oils will soon play in the edibles space.