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Valens Company Announces Extraction Arrangement with Emerald Health

The Valens Company (TSXV: VLNS) announced this morning two new multi-year agreements for extraction services. The first, with Emerald Health Therapeutics (TSXV: EMH) will see the firm perform white label and extraction services for the issuer, while the second agreement, with Dynaleo will see Valens’ supply cannabis extract for use in edible products.

The first agreement, with that of Emerald Health, will see Emerald supply Valens with 10,000 kilograms of cannabis and hemp biomass at minimum per year for an initial four year term. The biomass will then be extracted into resins and distillates, which will then be manufactured into second generation cannabis products on a white label basis for Emerald Health.

The first shipment of biomass under this agreement is anticipated to occur in the first quarter of fiscal 2020.

The second arrangement announced this morning will see Valens provide cannabinoid content to Dynaleo, Inc, an edibles manufacture, for use in the firms edible products. The agreement has an initial two year term, with two automatic one year renewals.

Under the initial term, Valens will provide Dynaleo with 40 kilograms of THC or CBD distillate or Sorse emulsions for use in edible products. Year three will see that figure increase to fifty kilograms of active distillate, while year four will increase to seventy five kilograms.

No revenue figures were provided for either contract announced this morning.

The Valens Company last traded at $3.02 on the TSX Venture.


Information for this briefing was found via Sedar and Valens GroWorks. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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