SEATTLE, Wash., May 31, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network
dedicated to the North American cannabis industry, announces publication of an article covering Valens GroWorks Corp. (CSE:VGW) (VGW.CN) (CNSX:VGW), a multi-licensed company, based in the
Okanagan Valley of British Columbia, that recognizes the trend in the Canadian cannabis industry toward oils and derivatives and is
uniquely positioned to capitalize on it. Valens is covering all of the bases, with a late-stage licensed producer application
pending; two dealers licenses that allow for research, cultivation, and product development; high volume extraction capability; and
a distribution deal in place with Canopy Growth Corporation.
As the cannabis industry matures throughout North America and across the globe, some trends are solidifying in terms of the
preferred method of intake. Notably, smoking cannabis flower is becoming less prevalent while the use of extracts and oils (and
products based on those) is on the rise. With Canada on the verge of legalizing cannabis for adult-use, the country is sort of a
test case for market dynamics. The most recent data released by Health Canada shows sales of cannabis oil on par with dried
marijuana as of April 2017, but exceeding dried sales by almost 50% as of December 2017.
The Valens Licenses and Facilities
Valens GroWorks consists of three subsidiary companies. The first, wholly-owned Valens Agritech Limited, holds a dealers license
from Health Canada that allows for cannabis cultivation, processing, oil production, and sales of those oils through licensed
producers. Currently housed in a 17,000 square foot cultivation and research center, the company is in the late stages of its
application to become an ACMPR licensed producer as well.
Valens AgriTech utilizes state-of-the-art CO2 extraction equipment that efficiently yields pure extracts with minimal
post-processing requirements. With the recent addition of two more extraction machines, the company can now process 6,500 kg/month
of cannabis raw material. The oils produced in the process can initially be sold through Valens’ agreement with Canopy Growth,
offering near-term revenue while the company expands its operations and develops its own distribution networks. Alongside the
revenue opportunity, Valens’ presence in Canopy’s CraftGrow distribution network allows the company to develop early brand
recognition. This is especially important in the early stages of recreational legalization.
Valens AgriTech recently completed its own first harvest with tremendous results. Growing a strain of cannabis expected to yield
18-19% THC content, the company reported crops yielding about 24% THC. The company credits its Master Growers’ expertise, advanced
growing facility, and overall commitment to providing credible products, and the results show great promise as the foundation for
creating premium oil-based products.
The second wholly-owned subsidiary, Supra THC Services, also holds a dealer’s license from Health Canada, though this one is a bit
different. Supra doesn’t cultivate its own cannabis, but offers commercial testing and analytical services. Supra recently moved
into the Valens AgriTech facility, which is in the process of being GMP-certified. This certification is important, because with it (and the appropriate export
licenses) the company would be able to sell its products in even the most demanding regulatory environments.
Supra offers testing and analytical services to individuals and licensed producers, offering another near-term revenue source.
As the cannabis industry expands, and in light of a number of pesticide-based product recalls in Canada, the need for accurate
third-party testing is great now and will only grow in the future. In a further indication of Valens’ commitment to quality
science, the company has also teamed with research and laboratory giant ThermoFisher Scientific to create a Centre of Excellence
for Plant Based Medicine Analytics in the Valens facility.
The third wholly-owned subsidiary, Valens Farms, was recently formed to commercially produce premium quality cannabis. The
company recently entered into a partnership with Kosha Projects Inc. The companies have broken
ground on a 400,000 sf cannabis production facility in Armstrong, BC. The city has already approved the construction of around
850,000 sf, giving Valens Farms room to expand even further should the need arise. When it’s all said and done, the two companies
will each have a 50% interest in the subsidiary.
The Bigger Picture
All of the pieces fit nicely into the Valens puzzle, comprising a company that offers a more complete picture than many more
well-known cannabis enterprises. Valens’ ultimate goal is to extract and sell its own premium cannabis and cannabis-derived
products sourced from cultivation facilities that they own, operate or partner with to ensure the product is consistent and of
superior quality. The receipt from Health Canada of the license to produce, and the subsequent license to sell, is certainly key in
allowing Valens to control all aspects of its vertically integrated operation. But even prior, the company is in a unique position
to capitalize on the booming Canadian (and even international) cannabis industry.
Through its licensed subsidiaries, Valens can cultivate its own cannabis to fuel research and development of products. These
products can be developed internally, or on behalf of third parties like licensed producers, pharmacies, and natural health
companies. Examples of cannabis-derived products, some of which have yet to be legalized in Canada, include edibles, beverages,
personal care products, and nutraceuticals.
Valens is currently extracting pure cannabis oils for research to perfect its own products (upwards of 20 types) that could then
be sold initially through the extensive CraftGrow network, including tweedmainstreet.com, and through other distribution channels as the company develops them.
Valens currently has 100 kilos of extract on site, giving the company plenty of raw material for the scientific development and
validation of its formulations prior to hitting the market.
Meanwhile, the company is establishing itself as a leader in lab services and analytics. Near-term revenue streams like this are
invaluable to Valens as it looks to establish its brand and expand operations, potentially decreasing the need to raise money along
the way. As it stands now, the company has sufficient funds to move forward with its business plan and has no plans for financing
in the near future. Keep an eye out for future developments as there are plenty of potential catalysts on the Valens GroWorks
horizon.
Please follow the link to read the full article: http://www.cannabisfn.com/valens-groworks-capitalizing-cannabis-extracts-products-surge-canada/
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