Valens GroWorks Secures Key Licensing Amendment

Extraction specialist Valens GroWorks Corp. [stock_market_widget type="inline" template="generic" color="default" assets="VGW.V" markup="(TSXV: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] has gained an amended Health Canada license that allows it to sell directly to provincial distributors and retailers.

The Kelowna-based firm has built up its business by offering extraction services to Canadian licensed producers that want to sell concentrates. It can now begin producing its own vaporizer cartridges, beverages, topicals, and other desired products and selling them on direct to retailers and provincial wholesalers.

It can also now start supplying its white-label customers with tinctures and gel caps. “We are excited to be able to utilize this license, our industry leading extraction, IP and formulation services along with our strategic partnerships with companies like Shoppers Drug Mart, to provide our white label partners access to a comprehensive service offering,” said chief executive Tyler Robinson.

Valens secured a deal to supply Shoppers Drug Mart with a range of cannabis oil products last week. The agreement is for an initial three-year term, with the option to renew for an additional two years if it goes well.

The company is building a new white-label facility and it is expected to be completed during the first half of 2020. This is expected to increase Valens’ extraction throughput capacity to more than 1 million kg per year, while also substantially increasing the range of products it can offer customers.

It will be built to EU GMP standards, allowing it to export to Europe.

In other licensing news, Zenabis Global Inc. [stock_market_widget type="inline" template="generic" color="default" assets="ZENA.TO" markup="(TSX: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] has gained approval from Health Canada to produce cannabis at the final portion of its Atholville facility. The amendment adds 3,000 kg of licensed annual cultivation capacity at the site, taking the total to 46,300 kg of dried cannabis per year at Atholville and 57,000 kg across its entire portfolio.

In nine months, the firm has increased the licensed annual cultivation capacity of the Atholville site from less than 6,000 kg to 46,300 kg of dried cannabis. Atholville is one of six facilities that Zenabis owns across Canada, and if they were all fully built out the capacity would reach approximately 490,800 kg of dried cannabis annually.

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The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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