Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) has signed a multi-year cannabis extraction, and white label deal with Valens GroWorks Corp (OTCMKTS:VLNCF).
Emerald to supply 10,000kg annually to Valens for processing
The initial term of the agreement is four years, whereby Emerald will supply at least 10,000 kg of hemp biomass and cannabis per year to Valens. They will supply the product for processing through the exclusive extraction and processing methods of Valens on a fee for service basis.
Besides the extraction and processing services, Valens will also provide white-label services that include mixing, formulation as well as fixing for product formats. The product formats will encompass tinctures, vaporizers, and softgels. Valens has the required license to carry the obligations as indicated under the agreement, and Emerald is expecting to make the first shipment in the first quarter of 2020.
Valens GroWorks CEO, Tyler Robson, stated that they were delighted to partner with Emerald by providing their extraction processing and white label expertise to enhance their supply chain. He added that Emerald has a very important medical marijuana program in Canada, and they were looking forward to working together to help in scaling their operations and expanding their product portfolio.
Emerald Health seeks to exploit Valens’ proprietary fulfillment solution
Riaz Bandali, the CEO of Emerald, indicated that they were pleased to partner with Valens, and they look forward to introducing the products they will produce through the strategic partnership to the market. Bandali added that besides Valens being an industry leader in cannabis extraction, formulation as well as other services, its end-to-end fulfillment solution is cost-effective. As a result, this can help Emerald in transitioning its product ideas into the product in a cost-effective and faster way.
Recently Emerald gave its Pure Sunfarms joint venture $940,000. Thu is part of the agreement to pay around $25.0 million with the exercise of Pure Sunfarm’s acquisition of Delta 2 greenhouse. The company is planning to advance around $710,000 as part of the final payment in January 2020.