Valens GroWorks Corp (CSE:VGW) (OTCMKTS:VGWCF) said Thursday that it had a significant boost in its extraction capacity for dried cannabis and hemp.
The company said in its fiscal 2018 earnings statement that the capacity has increased to 240,000 kilograms from 72,000 kilograms in March 2018, making it the largest third-party extraction company in Canada.
Valens added that it has reached multiyear agreements to provide premium extraction services to cannabis companies including Canopy Growth Corp (TSE:WEED) (NYSE:CGC), Tilray Inc (NASDAQ:TLRY) , OrganiGram Holdings Inc (CVE:OGI) (OTCMKTS:OGRMF) and The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF).
“As a result, fiscal 2019 is set to be an exciting year as Valens enters a new phase in its evolution and starts to generate meaningful revenues for the first time,” CEO Tyler Robson said in a statement.
Goals for 2019 include securing additional extraction and product development contracts as well as receiving European Union good manufacturing practice (GMP) certification.
Based in Kelowna, British Columbia, the research-driven company focuses on specialized extraction methodology, distillation and cannabinoid isolation and purification, as well as associated quality testing with three wholly owned subsidiaries.
For the 2018 fiscal year ended November 30, the growing company posted a comprehensive loss of C$15.9 million, or C$0.22 per share, compared with a loss of C$4.4 million, or C$0.08 per share a year earlier.
Shares of Valens were down C$0.14 to C$3.10 in Thursday’s Canadian trading. They decreased US$0.11 to US$2.32 on the OTC Markets.
–This story has been updated to give the latest share prices–
Contact Dennis Fitzgerald at [email protected]