VANCOUVER, May 17, 2018 /CNW/ - Valens GroWorks Corp. (CSE:
VGW) (the "Company" or "Valens"), a multi-licensed, vertically integrated provider of cannabis products, is
pleased to announce a multi-purpose partnership agreement (the "Agreement") with SpeakEasy Cannabis Club Ltd. (CSE: EASY)
("SpeakEasy"). SpeakEasy shall also source an interim supply for Valens of 2,500 to 5,000 kilograms per month of suitable
Cannabis material.
"This partnership with SpeakEasy dovetails neatly with our expansion objectives. As a specialist in the extraction of
cannabis, Valens creates some of the best oils in the world, with our proprietary process creating a product that is clear,
transparent 100% cannabis oil. Companies like SpeakEasy are recognizing Valens' expertise in the extraction business. By helping
us secure a consistent quality product for our extraction process we jointly benefit to increase our distribution platform
internationally. We are extremely excited to move forward with SpeakEasy" commented Valens CEO Tyler
Robson.
Highlights of Proposed Partnership
Innovation and R&D Diversity
Valens' Dealer's License provides SpeakEasy with a platform to conduct research and development ("R&D"), store
cannabis derivatives not covered under the Access to Cannabis for Medical Purposes Regulations ("ACMPR"), export cannabis
oils and concentrates to international markets, and provides a facility to process natural health products. To accelerate and
rationalize Valens' exportation of cannabis products, SpeakEasy will introduce Valens to its international distribution
network.
Expedited Sale to Domestic Markets
SpeakEasy and Valens, as part of the supply component of the Agreement, agree to secure a suitable partnership with an ACMPR
LP sales licensee to accelerate domestic sales and marketing.
Export of Cannabis Oils to International Markets
Valens' existing R&D and Dealer's license will allow SpeakEasy to import and export key genetics, expediting joint product
innovation and brand development on a global scale.
Secure Future Sales
Pending final approval under its ACMPR LP application, SpeakEasy will source an interim supply of Cannabis for Valens with
2,500 - 5,000 kilograms of suitable material per month, with a start date to be mutually determined.
Due Diligence Period
Valens has commenced a thirty (30) day due diligence period (the "Due Diligence Period"). The parties may mutually
agree to an extension. Unless Valens provides notice to SpeakEasy on or before the expiry of the Due Diligence Period that the
results of due diligence investigations are satisfactory and that it intends to proceed with the arrangement, the Agreement will
automatically terminate without liability, unless such date and time is mutually extended by the parties in writing.
Each party will use commercially reasonable efforts to complete and execute a definitive agreement on or before the expiry of
the Due Diligence Period.
"This deal with Valens is the first part of a series of arrangements that will bring both SpeakEasy and Valens to the
forefront of the medical and recreational extract market both domestically and internationally, giving SpeakEasy a high volume of
assured sales and providing Valens a consistent supply of high quality extract material produced at our site in Rock Creek." stated Marc Geen, SpeakEasy CEO. "When Health Canada
approves outdoor cultivation, because of our location SpeakEasy will be one of the lowest cost producers in the world."
About SpeakEasy Cannabis Club
SpeakEasy Cannabis Club Ltd. is a late stage ACMPR applicant that is leveraging three generations of farming experience and
the largest land package of an LP in Canada with 290 acres of the best agricultural land in
British Columbia's Southern interior region, known as the Napa
Valley of weed country. SpeakEasy is disrupting the cultivation model by aggregating British
Columbia's best craft growers under one umbrella to produce the highest quality cannabis targeted at the highly sought
after millennial recreational market.
SpeakEasy has submitted its extensive evidence package to Health Canada for its current 10,000 square foot facility and has
commenced construction on its 80,000 square foot expansion facility. This 80,000 square foot facility will include growing,
extraction and genetics labs.
About Valens GroWorks
Valens GroWorks Corp. is a vertically integrated provider of Canadian cannabis products, specializing in proprietary
extraction techniques, with three wholly-owned subsidiaries located in Kelowna, BC. Subsidiary
Valens Agritech has initiated cannabis production, processing and sales under a Health Canada Dealer's Licence, which includes a
supply agreement with Canopy Growth Corporation under their extensive CraftGrow distribution network. Subsidiary Supra THC
Services is a Health Canada licensed cannabis testing lab providing sector-leading analytical services and has partnered with
Thermo Fisher Scientific to develop a Centre of Excellence in Plant Based Medicine Analytics. Subsidiary Valens Farms is in the
process of becoming a purpose-built facility in compliance with European Union (EU) Good Manufacturing Practices (GMP) standards,
ensuring the product from this facility can be exported anywhere in world. For more information, please visit http://valensgroworks.com, http://www.valensagritech.com and http://www.suprathc.ca.
On behalf of the Board of Directors,
VALENS GROWORKS CORP.
(signed) " Tyler Robson"
Chief Executive Officer
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 CSE or other regulatory authority has not reviewed, approved or disapproved the contents of this press release. We seek
Safe Harbour.
SOURCE Valens GroWorks Corp.
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