On Tuesday, shares of Valens were on the rise, up 3.1% at C$4.00 in Toronto, up 2.6% at US$3.02 in New York.
The firm said it has expanded the volume of extraction services and has added an option to provide contract manufacturing services to the arms-length, binding multi-year agreement announced in February with Tilray.
Under the initial two-year term of the expanded agreement, Valens will extract a minimum of 60,000 kg of dried cannabis and hemp biomass annually, on a fee-for-service basis, up 300% from the 15,000 kg annual commitment outlined in the original agreement.
In addition to this, Valens may provide contract manufacturing services for tincture bottles and gel caps, with the option to offer contract manufacturing services for other products, including vaporizer cartridges and topicals, according to Health Canada regulations.
"This significant expansion of extraction services requested by Tilray is a true demonstration of the industry-leading service being provided to our partners," said CEO Tyler Robson in a release.
"We are honoured to be recognized by Tilray, not only as a leader in the extraction space, but also for our ability to create value through our innovative product development and contract manufacturing services. We anticipate these services will become a significant component of our business as we continue to grow alongside our customers," he added.
Kelowna-based Valens is a multi-licensed provider of cannabis products and its services are focused on various proprietary extraction methodologies, distillation, cannabinoid isolation and purification, as well as associated quality testing. Valens has extraction processing and supply agreements with a number of leading producers across Canada.
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Contact Katie Lewis at [email protected]