The Valens Company Inc (CVE:VLNS) (OTCQX:VLNCF) (FRA:7LV) announced Tuesday it has received an amendment to its existing Health Canada standard processing licence to allow operations to commence at its second manufacturing and processing facility in Kelowna, British Columbia (K2 Facility).
Through this licence amendment, Valens said it has significantly increased its production capacity and capabilities, further solidifying its position as one of the largest third-party manufacturers and distributors of premium cannabis derivative products in Canada.
Located beside the company's facility focused on cannabis processing (K1 Facility), the 42,000 square-foot K2 Facility is equipped with the proprietary technologies and product manufacturing capabilities to significantly increase the company's output of finished cannabis derivative products to Canadian and international markets.
The scalable K2 Facility holds the capacity to manufacture a wide range of product formats, including vapes, sprays, tinctures, capsules, topicals, in addition to small-scale beverage filling, to meet the growing demand for Cannabis 2.0 products.
Building on the expertise the company has developed from its white label and custom manufacturing business, Valens said the K2 facility will optimize production and quality assurance efficiencies, and together with the K1 Facility, will rapidly increase its manufacturing footprint.
In preparation for continued global expansion, the K2 Facility was built with Good Manufacturing Practices (GMP) compliance to support EU level certification. Additionally, Valens has completed the expansion of its office space in the Kelowna headquarters to accommodate its growing team and strengthen the resources necessary to continue to execute its corporate strategy.
"The full build-out of our K2 facility, and now the ability to commence operations, allows us to hit a key milestone in our corporate strategy by the end of fiscal 2020, which is the significant expansion of our processing and manufacturing capacity to maintain our speed to market and cost advantage across all 2.0 product categories," said CEO Tyler Robson in a statement.
"The investment we have made in our white label and custom manufacturing capabilities, paired with Valens' custom-engineered processing platform, will continue to set us apart not only domestically, but in global markets as we look to replicate the success of our business model overseas."
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