Valens GroWorks Corp (CSE:VGW) (OTC:VGWCF) announced Tuesday that it has entered into a multi-year extraction services agreement with Organigram Inc (CVE:OGI) (OTC:OGRMF) for cannabis and hemp extraction services.
Under the terms of the agreement, Valens will extract cannabis flowers and trim from Organigram's Moncton operation as well as hemp, to produce extract concentrate. In turn, the concentrate will be used by Organigram to produce oils and, eventually, derivative edible and vaporizable cannabis products.
The legalization of cannabis edibles and other derivative-based products in Canada is expected later this year. In addition, Valens will also provide lab services for Organigram as needed.
"Looking ahead to another year of unprecedented firsts in the national and global cannabis industries, our growth strategy is aggressive," said Organigram CEO Greg Engel.
Engel said a key element of “that success” is partnerships with companies like Valens who can offer the “capacity, quality and expertise” to help ensure Organigram delivers on its ongoing commitments to meet the increasing demand of the global medical and adult recreational cannabis markets.
"We are pleased to be a trusted partner of Organigram and the Canadian cannabis industry," said Valens GroWorks CEO Tyler Robson. "We are proud to collaborate with companies like Organigram who continue to look for innovative technologies that will best serve the long-term needs of their customers."
The agreement between the two companies is effective immediately.
Multi-year agreement with Sundial Growers
Last week, Valens entered into a multi-year services agreement with privately-held Sundial Growers for cannabis extraction services. Under the deal’s terms, Sundial will ship bulk quantities of dried cannabis to Valens over an initial three-year term.
Valens will, in turn, process the cannabis into resin and other cannabis-oil derivative products. Valens will also conduct research & development for Sundial to support their product development efforts using cannabis oil derivative products.
Tie-up with Canopy Growth
Valens also recently inked a multi-year extraction agreement to process Canopy Growth Corp’s (NYSE:CGC) (TSX:WEED) whole flower and trim into high-grade cannabis resin.
Based in Kelowna, British Columbia, Valens is a cannabis company that focuses on extraction, distillation and cannabinoid purification as well as quality testing.
Through its three wholly-owned subsidiaries, Valens Agritech, Valens Farms and Valens Labs Ltd, the company is involved in customized cannabis extraction, cultivation, and testing. The company is currently capable of processing more than 78,000 kg of cannabis per year.
Contact Uttara Choudhury at [email protected]