The Valens Company (CVE:VLNS) (OTCQX:VLNCF) has signed a custom manufacturing agreement with boutique brand house FPS Brands Inc to launch ufeelu, a line of craft, hemp-derived CBD products.
Under the terms of the two-year agreement, The Valens Company has agreed to manufacture a minimum of 250,000 units across a variety of branded products in the ufeelu portfolio.
Valens will initially focus on the development of cannabis oils, vapes and topicals, with specialty drinks expected to be added to the product line shortly. The company said it will be responsible for providing premium extracts, filling, packaging and manufacturing services, in addition to the national distribution of the ufeelu branded products.
READ: The Valens Company teams up with consumer packaged goods group High12 for new line of vape products
The Kelowna, British Columbia-based company will earn fees equal to the predetermined wholesale price for all branded products manufactured, shipped and sold, in addition to a brokerage fee on monthly revenue.
FPS Brands will receive revenue upon the sale of products to provincial cannabis regulators and a minimum production deposit will be provided upfront by the Vancouver-based boutique brand house focused on creating innovative and approachable cannabinoid-based products.
The ufeelu product line uses Canadian-grown hemp and carefully selected plant-based terpenes to craft naturally enhanced broad-spectrum CBD blends in various consumable methods. The low THC line of products is designed for those who want whole plant extracts without the psychoactive effects.
"We are excited to launch ufeelu with our new partner FPS Brands, a fellow Western Canadian company focused on crafting artisanal CBD products," Valens CEO Tyler Robson said in a statement.
"Their ability to dream up original brands such as ufeelu perfectly complements our expertise in using plant-based science to create customizable oil-based products. The ufeelu line will leverage Valens' vast terpene database, in addition to botanical extracts, to bring these meaningfully curated CBD products to Canadian consumers in fall 2020," he added.
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