VANCOUVER, May 17, 2018 /CNW/ - Valens GroWorks Corp. (CSE: VGW) (the "Company" or "Valens"), a multi-licensed, vertically integrated provider of cannabis products, is pleased to announce a multi-purpose partnership agreement (the "Agreement") with SpeakEasy Cannabis Club Ltd. (CSE: EASY) ("SpeakEasy"). SpeakEasy shall also source an interim supply for Valens of 2,500 to 5,000 kilograms per month of suitable Cannabis material.
"This partnership with SpeakEasy dovetails neatly with our expansion objectives. As a specialist in the extraction of cannabis, Valens creates some of the best oils in the world, with our proprietary process creating a product that is clear, transparent 100% cannabis oil. Companies like SpeakEasy are recognizing Valens' expertise in the extraction business. By helping us secure a consistent quality product for our extraction process we jointly benefit to increase our distribution platform internationally. We are extremely excited to move forward with SpeakEasy" commented Valens CEO Tyler Robson.
Highlights of Proposed Partnership
Innovation and R&D Diversity
Valens' Dealer's License provides SpeakEasy with a platform to conduct research and development ("R&D"), store cannabis derivatives not covered under the Access to Cannabis for Medical Purposes Regulations ("ACMPR"), export cannabis oils and concentrates to international markets, and provides a facility to process natural health products. To accelerate and rationalize Valens' exportation of cannabis products, SpeakEasy will introduce Valens to its international distribution network.
Expedited Sale to Domestic Markets
SpeakEasy and Valens, as part of the supply component of the Agreement, agree to secure a suitable partnership with an ACMPR LP sales licensee to accelerate domestic sales and marketing.
Export of Cannabis Oils to International Markets
Valens' existing R&D and Dealer's license will allow SpeakEasy to import and export key genetics, expediting joint product innovation and brand development on a global scale.
Secure Future Sales
Pending final approval under its ACMPR LP application, SpeakEasy will source an interim supply of Cannabis for Valens with 2,500 - 5,000 kilograms of suitable material per month, with a start date to be mutually determined.
Due Diligence Period
Valens has commenced a thirty (30) day due diligence period (the "Due Diligence Period"). The parties may mutually agree to an extension. Unless Valens provides notice to SpeakEasy on or before the expiry of the Due Diligence Period that the results of due diligence investigations are satisfactory and that it intends to proceed with the arrangement, the 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 a definitive agreement on or before the expiry of the Due Diligence Period.
"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, giving SpeakEasy a high volume of assured sales and providing Valens a consistent supply of high quality extract material produced at our site in Rock Creek." stated Marc Geen, SpeakEasy CEO. "When Health Canada approves outdoor cultivation, because of our location SpeakEasy will be one of the lowest cost producers in the world."
About SpeakEasy Cannabis Club
SpeakEasy Cannabis Club Ltd. is a late stage ACMPR applicant that is leveraging three generations of farming experience and the largest land package of an 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 foot facility and has commenced construction on its 80,000 square foot expansion facility. This 80,000 square foot facility will include growing, extraction and genetics labs.
About Valens GroWorks
Valens GroWorks Corp. is a vertically integrated provider of Canadian cannabis products, specializing in 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 Dealer's 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. Subsidiary 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 world. For more information, please visit http://valensgroworks.com, http://www.valensagritech.com and http://www.suprathc.ca.
On behalf of the Board of Directors,
VALENS GROWORKS CORP.
(signed) "Tyler Robson"
Chief Executive Officer
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, Telephone: +1.705.888.2756