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VANCOUVER, May 17, 2018 /CNW/ - Speakeasy Cannabis Club Ltd. (CSE: EASY) (Frankfurt: 39H) (the "Company" or "SpeakEasy") a late stage ACMPR applicant is pleased to announce it has entered into a Letter Of Intent with Valens Groworks Corp. (CSE:VGW) ("Valens"), a company operating with a Dealer's License for cannabis whereby SpeakEasy shall supply Valens with cannabis in the amount of 50% of the cannabis produced by SpeakEasy as categorized "for extraction purposes." Additionally, SpeakEasy shall endeavour to source an interim supply of Cannabis for Valens with 2,500 - 5,000 kilograms of suitable material per month.
"This deal with the talented group at Valens represents a very important part of our strategy to enter the extract market soon and with a strong presence both domestic and internationally."
"This deal gives SpeakEasy a high volume of assured sales and and will provide Valens a consistent supply of high quality extract material produced at our site in rock creek. When Health Canada approves outdoor cultivation, because of our location, SpeakEasy will be able to be one of the lowest cost producers in the world." stated Marc Geen, CEO.
Highlights of Transaction
Dealer License Applications:
Valens will use its Dealer License of cannabis to facilitate a location for SpeakEasy, in its sole discretion.
Innovation and R&D Diversity
The Dealer's License will enable SpeakEasy to conduct research and development ("R&D") and store cannabis derivatives that are not currently covered under the Access to Cannabis for Medical Purposes Regulations ("ACMPR"). The Dealer's License also positions the Business to export cannabis oils and concentrates to international markets, as well as to process natural health products. In connection with the proposed importation of cannabis products, SpeakEasy shall introduce Valens to SpeakEasy's international distribution network.
Export Cannabis Oils To International Markets:
SpeakEasy and Valens agree to work together through this supply agreement and find a suitable partner with an ACMPR LP sales license to market and distribute product.
Expedited Sale To Domestic Markets:
Valens's ongoing R&D and Dealers license will allow SpeakEasy to import/export key genetics earlier than previously expected; evolving product innovation and ultimately brand development on a global scale.
Secure Future Sales:
SpeakEasy will source an interim supply of Cannabis for Valens with 2,500 - 5,000 kilograms of suitable material per month. The start date for this will be mutually determined.
"This deal with Valens is the first part of a series of arrangements that will bring both SpeakEasy and Valens to the forefront of the medical and recreational extract market both domestically and internationally," stated Marc Geen, CEO.
Due Diligence Period
Valens shall have a due diligence period commencing upon the execution of this document and expiring thirty (30) days thereafter (the "Due Diligence Period"), provided that the parties may mutually agree to extend that. Unless Valens provides notice to SpeakEasy by 5:00 p.m. (Kelowna time), on or before the expiry of the Due Diligence Period, that the results of these due diligence investigations are satisfactory and they intend to proceed with the transaction, this agreement will automatically terminate without liability, unless such date and time is mutually extended by the parties in writing.
Each party will use commercially reasonable efforts to complete and execute the Definitive Agreement on or before the expiry of the Due Diligence Period.
About SpeakEasy Cannabis Club Ltd. (CSE:EASY)
SpeakEasy Cannabis Club Ltd. is a late stage ACMPR applicant that is leveraging three generations of farming experience and the largest land package of LP in Canada with 290 acres of the best agricultural land in British Columbia's Southern interior region; known as the Napa Valley of weed country. SpeakEasy is disrupting the cultivation model by aggregating British Columbia's best craft growers under one umbrella to produce the highest quality cannabis targeted at the highly sought after millennial recreational market.
SpeakEasy has submitted its extensive evidence package to Health Canada for its current 10,000 square feet facility and has commenced construction on its 80,000 square feet expansion facility. This 80,000 square foot facility will include growing, extraction and genetics labs.
About Valens GroWorks Corp. (CSE:VGW)
Valens GroWorks Corp. is a vertically integrated provider of Canadian cannabis products which come from our proprietary extraction techniques, with three wholly-owned subsidiaries located in Kelowna, BC. Subsidiary Valens Agritech has initiated cannabis production, processing and sales under a Health Canada Dealers Licence, which includes a supply agreement with Canopy Growth Corporation under their extensive CraftGrow distribution network. Subsidiary Supra THC Services is a Health Canada licensed cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant Based Medicine Analytics. Valens Farms is in the process of becoming a purpose-built facility in compliance with European Union (EU) Good Manufacturing Practices (GMP) standards, ensuring the product from this facility can be exported anywhere in the world where Cannabis is nationally legal for medical or (in future) adult usage purposes. Valens will be the first company to encompass the 'whole plant' extraction process which reduces costs and produces a premium extract. For more information, please visit http://valensgroworks.com, http://www.valensagritech.com and http://www.suprathc.ca.
ON BEHALF OF SPEAKEASY CANNABIS CLUB LTD.
(signed) "Marc Geen"
Chief Executive Officer
Not for distribution to United States wire services or dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Certain statements included in this press release constitute forward-looking information or statements (collectively, "forward-looking statements"), including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "should" and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. This press release contains forward looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.
Statements about the Target's future facility expansion plans or ACMPR license application are all forward-looking information.
Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Factors that could cause the actual results to differ materially from those in forward-looking statements include failure to obtain regulatory approval, the continued availability of capital and financing, and general economic, market or business conditions. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that the statements will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Readers should not place undue reliance on the Company's forward-looking statements.
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SOURCE SpeakEasy Cannabis Club Ltd.
For further information: Speakeasy Cannabis Club Ltd., www.speakeasygrowers.com, Telephone: 604-283-1722