Valens Groworks signs Craftgrow deal with Canopy Growth
Valens GroWorks Corp. (CSE: VGW) (“Valens GroWorks”, or the “Company”) is pleased to announce that its wholly owned subsidiary Valens Agritech Ltd. (“Valens“), a Health Canada Licensed Dealer, has signed a supply and sales agreement with Canopy Growth Corporation (TSX: WEED) (“Canopy Growth“) for the distribution, marketing and sale of the Company’s branded products through Canopy Growth’s extensive CraftGrow distribution network, including Tweedmainstreet.com, to take effect upon Valens securing a Health Canada licence under the Access to Cannabis for Medical Purposes Regulations (“ACMPR“). The deal secures a diverse supply of curated products for Canopy Growth and a reliable sales channel and stream of revenue for Valens.
“This supply and sales agreement with Canopy Growth, a world leader in the cannabis space, is a significant milestone ensuring Valens will have a secure revenue stream from our production while building brand recognition through a substantial distribution pipeline, after becoming a Licensed Producer under the Access to Cannabis for Medical Purposes Regulations.” Said Tyler Robson, CEO of Valens GroWorks. “This is the beginning of a long-term partnership through which we will be able to commercialize our unique product strains and innovative technologies for mutual benefit. By joining CraftGrow, we also have the opportunity to work with Canopy Growth’s expert team to share know-how, technology, and best growing practices to maximize yield and ensure the highest quality products.”
Canopy Growth is Canada’s preeminent cannabis company with international reach and a reputation for partnering with some of the biggest names in the cannabis industry. Valens joins a select group of companies in the CraftGrow program.
“We welcome Valens to the Canopy Growth family and look forward to collaborating with their team to provide a steady and high-quality source of cannabis products to increase product variety for our customers,” said Mark Zekulin, President, Canopy Growth. “CraftGrow aims to build an ecosystem of fantastic options for patients and we look forward to including the Valens offering into our shop and onto store shelves as we continue our work through provincial jurisdictions to establish a national presence for our brands and our partners.”
The CraftGrow program also provides Valens direct access to Canopy Growth’s extensive operational, distribution, marketing and sales infrastructure through the Tweed Main Street online marketplace where a new order is placed on average every ninety seconds. Its sector-leading fulfillment centre then ships these orders to customers all across the country.
“Securing a long-term supply agreement with the industry leader will provide a stream of revenue to fuel the Company’s expansion while focusing on our core competencies, production and innovation. Working together with Canopy Growth’s marketing and logistics teams will also help us introduce our unique products to the largest group of cannabis patients in the country,” said Saul Katz, President and Executive Chairman of Valens GroWorks, “This deal will also enable the Valens brand to achieve broad consumer exposure and immediate sales volume with a much-reduced marketing and logistic spend.
The agreement calls for CraftGrow to purchase up to 100% of Valens’ harvests as specific whole-flower strains or as premium oil products. It also provides Valens the opportunity to build and service its own customer base including medical cannabis patients and for exportation to international markets in the future.
“It is a great honour and opportunity to join Canopy Growth’s CraftGrow distribution network,” continued Mr. Robson, “We are on track to realizing our objective of becoming a leading purveyor of products and technologies in the cannabis sector worldwide. Coupling Canopy Growth’s marketing and distribution expertise with our product innovation and quality control capabilities creates a “dream team” scenario.”