In a statement on Thursday, the Canadian company also provided an update on its Normal Course Issuer Bid (NCIB) activity showing it was buying back shares.
Under the agreement with TREC Brands, Valens will manufacture vape pens across three existing TREC brands; Thumbs Up Brand, WINK, and Blissed, with the potential to later produce other innovative products.
TREC has already launched a successful line of tinctures, flower, and pre-rolls, but through this partnership, vape pens will be introduced as a new product format across its current brand portfolio, said the company. The TREC agreement follows a royalty-based payment structure.
According to the company, TREC's mission is to build “socially conscious, purposeful brands” with commitments to initiatives that positively impact Canadian communities, and society as a whole. Each brand in the group's portfolio has a distinct mission that reflects the core values of the brand house:
- WINK curates unique products and partners with local designers to collaborate on accessories and donates 10% of profits to advance local communities with a focus on progressing culture in fashion, art and music
- Blissed strives to empower women to shed stigma and live happier, healthier and more authentic existences through educational content, community building and purposefully designed products
- Thumbs Up Brand aims to deliver high-quality cannabis at a fair price to the grower and the consumer
The execution of the TREC agreement boosts Valens’ customized manufacturing platform that both licensed producers and consumer packaged goods partners utilize to launch products.
In the statement, Valens CEO Tyler Robson said that through the partnership, Valens and TREC would bring “high-quality, bespoke products” to market.
"As Cannabis 2.0 continues to allow for exciting new products and brands to hit shelves in Canada, we are excited to develop products in partnership with authentic, community-centric brands such as those in the TREC portfolio," added Robson.
Valens said it is focused on continuing to “broaden its customer product platform” from its existing capsules, tinctures, sprays, vapes, beverages, concentrates, distillate, isolate, and SōRSE by Valens emulsion, and expects to “also include topicals and edibles in the near to medium term.”
"With The Valens Company's capabilities and expertise to provide customized products to suit each of our brands, we are confident that we are delivering the best possible products to our consumers with a company who values community-level engagement as much as we do," said TREC Brands CEO Trang Trinh.
Separately, Valens said it acquired 43,600 of its own shares through its NCIB during the month of May at a price range of $2.24-$2.25 per share. The company also said it intends to purchase more shares under the NCIB in “the coming quarters, and in the near-term” as Valens believes its share price “remains undervalued” in comparison to its industry peer group under current market conditions.
“The company will continue to purchase shares under the NCIB as opportunities arise and will provide updates on its activity,” said the company.
Valens is the largest third-party extraction company in Canada with an annual capacity of 425,000 kilograms of dried cannabis and hemp biomass at its facility in Kelowna, British Columbia.
Contact the author Uttara Choudhury at [email protected]
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