Hexo Corp (NYSE:HEXO), a company focused in the production and distribution of packaged cannabis products, has signed a business deal. The organization says the multi-year extraction services agreement will see it serve Valens with cannabis and hemp extraction services.
A focus into the future
It hopes that within the first year it will have already supplied 30,000kg of the products and then in the second move another 50,000kg.Valens has already decided on the service fee it will charge for the material processing. The company relies upon proprietary extraction processing methods in the delivery of its services.
An official working with Valens outlines that the agreement has clear guidelines. According to him, the only way the deal could be terminated would be if a 90- days notice would be written. The move needs to be done within the first year of operation.
The company says it is adequately planning for the endeavor. One of the officials working with the comoany says they expected to received the first shipment from HEXO early in Q3 of 2019.The processing activities will commence with immediate effect. He adds that they are glad that they already have all the proper licensing from Health Canada to undertake the processing activities under the agreement.
McMillan and Tyler’s perspective
The Vice-President of Strategic Business Development at HEXO Corp James McMillan opines, “HEXO is pleased to work with a quality organization like Valens. On the eve of edibles and concentrate legalization in Canada, this agreement will allow our company to bring an expanded offering to market, creating innovative products to deliver exceptional cannabis experiences to consumers.”
The CEO of Valens GroWorks Tyler Robson has been observing the cannabis market for quite some time and concludes its evolving fast. He looks forward to see matters to do with the pending legalization of additional auxiliary products resolved. According to him, we should await a drastic move before the end of this year. He thanks HEXO for recognized them and the great dedication they are showing to work with them. Robson says they won’t stop in their efforts to help HEXO deliver top quality products.