Valens GroWorks (CSE: VGW) (OTC: VGWCF) has updated its multi-year agreement with Tilray (NASDAQ: TLRY), which is focused on cannabis research, cultivation, production, and distribution.
The company has expanded the volume of extraction services and has added an option to provide contract manufacturing services to the arm’s length, binding agreement announced in February with Tilray.
Under the initial two-year term of the expanded agreement, Valens will extract on a fee for service basis a minimum annual quantity of 60,000kg of dried cannabis and hemp biomass, up 300% from the 15,000kg annual commitment outlined in the original agreement.
Additionally, the company may provide contract manufacturing services for tincture bottles and gel caps, with the option to offer contract manufacturing services for other product formats such as vaporizer cartridges and topicals as Health Canada regulations allow.
“This significant expansion of extraction services requested by Tilray is a true demonstration of the industry leading service being provided to our partners,†Valens CEO Tyler Robson stated.
Valens is focused on downstream secondary extraction methodology, distillation and cannabinoid isolation and purification, as well as associated quality testing with three subsidiaries located in and around Kelowna, BC.
Valens Agritech 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. It currently has extraction processing and supply agreements with various leading producers across Canada.
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 center of excellence in plant based science.
Valens Farms is in the process of becoming a purpose-built facility in compliance with European Union Good Manufacturing Practices 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.
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