Valens wins multi-year cannabis extraction deal with Sundial Growers

Valens GroWorks Corp (CSE:VGW) has entered into a multi-year services agreement with privately-held Sundial Growers for cannabis extraction services.

Under the deal’s terms, Sundial will ship bulk quantities of dried cannabis to Valens over an initial three-year term. Valens will, in turn, process the cannabis into resin and other cannabis-oil derivative products. Valens will also conduct research & development for Sundial to support their product development efforts using cannabis oil derivative products.

READ: Alta Corp Capital initiates coverage of Valens GroWorks with $5 price target and Outperform rating

“We are very excited for the opportunity to utilize our extraction services to support Sundial Growers’ team in delivering innovative, high-quality consumer packaged goods to the Canadian market,” said Tyler Robson, CEO of Valens GroWorks Corp in a statement.

Torsten Kuenzlen, Sundial CEO, was just as bullish on the new partnership. “We know that oils are in high-demand and with Valens’ capacity and expertise in extraction, consumers and medical patients will soon be able to benefit from Sundial’s award-winning genetics,” he said.

Sundial Growers is a privately-held, Alberta-based licensed cannabis producer.

READ: Valens GroWorks aims to capture a higher-level market in the cannabis extract space

Based in Kelowna, British Columbia, Valens is a cannabis company that focuses on extraction, distillation and cannabinoid purification as well as quality testing.

Valens has extraction processing and supply agreements with a number of leading producers across Canada. The company recently inked a multi-year extraction agreement to process Canopy Growth Corp’s (NYSE:CGC) (TSX:WEED) whole flower and trim into high-grade cannabis resin.

Valens shares closed up 4.8% to hit C$2.20 on Friday.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors