Valens GroWorks Corp (CSE:VGW) is partnering with Canopy Growth Corp (NYSE:CGC) (TSX:WEED) on a multi-year extraction agreement.
Valens, known for its extraction capabilities, will process Canopy’s whole flower and trim into high-grade cannabis resin.
Shares of Valens jumped more than 8% to C$1.57 while shares of Canopy slid 3.83% to C$41.20.
The first shipment of product is expected to head out before the end of the month.
"Diversifying our extraction supply capabilities with Valens, a company positioning itself as a specialized extractor, increases our ability to supply a consistent, high-quality inventory of oils for products such as Softgels," said Canopy Growth CEO Mark Zekulin.
Last October, Valens had taken part in Canopy Growth’s CraftGrow program, which allows craft producers to utilize Canopy’s sales channels to market their products.
With a cultivation license in hand, Valens plans to launch its own branded products via CraftGrow for the medical and recreational markets by the end of March 2019 .
"We take pride in our proprietary extraction processes and are honoured to be recognized for our capabilities in supporting the growth of the cannabis market, particularly with the increasing role cannabis oils will soon play in the edibles space," said Valens CEO Tyler Robson.
Valens recently teamed up with Thermo Fisher Scientific Inc (NYSE:TMO) and plans to use the company’s instruments to study cannabis.