Valens GroWorks (TSXV: VGW) announced this morning that it is one of the first extraction firms to sign a white label, cannabis infused beverage contract with a traditional alcohol beverage client. Valens will provide the required extracts, formulations, and infusion technology for the infused beverages, while the client, Iconic Brewing Co, will brand and market the product under a white label agreement.
The contract with Iconic Brewing is for a period of five years, and has minimum production quantities in place. The binding agreement will require Valens GroWorks to manufacture a minimum of 2.5 million bottled beverages over the life of the agreement, however there are provisions in place for increased production if required.
Iconic Brewing Co is a Toronto-based alcohol producer who recently established a cannabis-focused subsidiary to focus on opportunities in the emerging beverage sector. The firm currently has alcohol distribution across seven provinces, and produces products that include Cottage Spring Vodka Soda, Liberty Village Craft Cider, Picnic Wine Co, and Cabana Coast.
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Financial terms related to the binding agreement were not released by Valens or Iconic Brewing.
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.
