Valens to produce a minimum of 2.2 million vape pens on behalf of BRNT Ltd. for the Canadian market over an initial two year term
Largest publicly announced multi-year white label agreement to date for a branded finished product in the Canadian cannabis industry
Gross revenue potential to Valens under the Agreement of over $50 million in the first two years, subject to final acceptance from provincial distributors, including of the proposed price per unit.
KELOWNA, BC, Oct. 30, 2019 /CNW/ - Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF) (the "Company" or "Valens"), a vertically integrated provider of industry leading extraction products and services; including a diverse suite of extraction methodologies, next generation cannabinoid delivery formats and an ISO 17025 accredited analytical lab is pleased to announce a multi-year white label agreement (the "Agreement") with BRNT Ltd ("BRNT"), a leading, premium, cannabis ancillary company to launch a line of unique cannabis vape pens in Canada. Under the terms of the Agreement, Valens will provide high-quality cannabis extracts, filling services and national distribution of a line of custom-formulated BRNT-branded vape pens.
White Label Agreement
The initial term of the Agreement will be for two years, with two successive one year renewal options, and relates to the production and sale of a guaranteed minimum of 2.2 million BRNT-branded vape pens, with the gross revenue potential to Valens under the Agreement of over $50 million in the first two years, all subject to final acceptance from provincial distributors, including of the proposed price per unit. Under the terms of the Agreement, the two parties will split economics through a profit share structure reflective of the respective efforts of each party. Valens expects the first shipment under the Agreement to take place in the first fiscal quarter of 2020. The Company currently holds all required licensing from Health Canada to carry out its obligations under the Agreement.
BRNT is known for its rapid national growth, brand quality, industry experience and commitment to product excellence. BRNT currently participates in the ancillary products sector providing premium, high-quality cannabis accessories that are currently available in over 170 stores across Canada with international expansion underway including its newest line, Made By: a line of single-source cannabis extract vaporizers with uniquely designed hardware.
"As Valens begins official production of next generation products for Cannabis 2.0, we are excited to be collaborating with BRNT to bring to market a line of differentiated, high quality, concentrate vape products for Canadian consumers", said Tyler Robson, CEO of Valens GroWorks. "BRNT has shown impressive sales growth and market understanding through its ancillary offerings. In pairing their retail and product knowledge with Valens' processing and product development capabilities we believe this provides a solid foundation to provide a product with strong consumer appeal."
"Valens has demonstrated a commitment to cannabis extraction on a global scale that is driven by passion and quality. It was a natural fit for BRNT to collaborate with Valens to bring the Made By vaporizers brand to life with a partner that can mirror our globally recognized signature design aesthetic and brand development capabilities," said Simon Grigenas, CEO of BRNT Group. "BRNT and Valens are setting a new industry standard by creating meaningful brands and products through a focused, profitable approach, as opposed to the traditional vertical integration seen today."
About BRNT Group
BRNT Group is a Canadian cannabis design house known for its highly creative and authentic brands which have attracted a steadfast and loyal following around the world. Under the BRNT Group portfolio is BRNT Designs, a luxe cannabis accessories brand that has reimagined and redefined consumption, storage, and preparation accessories for dried cannabis. BRNT Designs has blended aesthetics with functionality to create innovative cannabis accessories. The second and newest brand, Made By, leverages artist collaborations for its hardware design and its highly-curated collection of cannabis extract formulations. Made By ready-to-go vaporizers are set to revolutionize the cannabis experience when they launch across Canada in 2020.
With the expansion of BRNT Designs into international markets, and the announcement of the creator-focused brand Made By, the BRNT Group continues to generate global buzz with its mission to de-stigmatize the cannabis experience and set the benchmark for creativity through brand design and technology.
Valens GroWorks Corp. (TSXV:VGW) (OTCQX:VGWCF) is a multi-licensed, vertically-integrated cannabis company focused on being the partner of choice for leading Canadian and international cannabis brands by providing best-in-class, proprietary services including CO2, ethanol, hydrocarbon, solvent-less and terpene extraction, analytical testing, formulation and white label product development. Valens is the largest third-party extraction Company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass at our purpose-built facility in Kelowna, British Columbia which is in the process of becoming European Union (EU) Good Manufacturing Practices (GMP) compliant. Additionally, our subsidiary Valens Labs is a Health Canada licensed ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant-Based Science. For more information, please visit http://valensgroworks.com. The Company's investor deck can be found specifically at http://valensgroworks.com/investors/.
Notice regarding Forward Looking Statements
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
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SOURCE Valens GroWorks Corp.
For further information: Scott Young, Valens GroWorks Corp., Telephone: +1.705.888.2756; U.S. / Europe Investors, KCSA Strategic Communications, Phil Carlson / Elizabeth Barker, [email protected], 212.896.1233 / 212.896.1203; Media, KCSA Strategic Communications, Anne Donohoe, [email protected], 212.896.1265