Vertically integrated Canadian company Valens GroWorks Corp. (OTC: VGWCF) has expanded the multiyear agreement with Tilray Inc. (NASDAQ: TLRY) that it signed Feb. 26.
What Happened
The expanded agreement adds to the volume of extraction services Valens will provide to Tilray and adds an option for Valens to offer contract manufacturing as well, Valens said in a Monday press release.
Why It's Important
The two-year expanded agreement will see Valens perform extracting services for Tilray at a minimum of 60,000kg of dried cannabis flower and hemp biomass. This figure represents a 300-percent increase from the initial number.
Under the expanded agreement, Valens said it may also offer similar services to Tilray for its tinctures, gel caps, vape cartridges and topicals.
"We are honored to be recognized by Tilray not only as a leader in the extraction space, but also for our ability to create value through our innovative product development and contract manufacturing services," CEO Tyler Robson said in a statement.
"We anticipate these services will become a significant component of our business as we continue to grow [alongside] our customers."
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What’s Next
Valens has its sights set on global export plans. Its subsidiary Valens Farm, is in the process of becoming a European Union Good Manufacturing Practices compliant facility, according to the company.
Valens over-the-counter shares were trading higher by 3.89 percent at $3.05 at the time of publication Tuesday, while Tilray shares were down by 4.8 percent at $41.07.
Related Links:
Valens GroWorks, The Green Organic Dutchman Sign Cannabis, Hemp Extraction Agreement
Valens GroWorks To Work With Tilray On Cannabis, Hemp Extracts
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