Valens expands Exclusive Licence Agreement to Bring Leading Cannabis-Infusion Technology to New International Markets
Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF) (the "Company" or "Valens"), a cannabinoid-based product company with industry leading extraction, next generation cannabinoid delivery formats and an ISO 17025 accredited analytical lab, is pleased to announce that it has entered an amended manufacturing and sales licence agreement with S?RSE Technology Corporation ("S?RSE") which grants Valens an exclusive licence for Canada, Europe, Australia and Mexico to use the proprietary S?RSE emulsion technology ("the Technology") to produce, market, package, sell and distribute cannabis-infused products (the "Agreement").
This is Why CBD Companies are Just Beginning to Expand to International Markets
By 2026, the global cannabis market is expected to hit $57 billion, says Adroit Market Research. In addition, according to BDS Analytics, as legalization spreads, the global market is expected to reach $40.6 billion by 2024. Granted, estimates vary, but it's very clear the cannabis has plenty of growth in store. Better, the European market is on course to grow 400% over the next four years, according to the Brightfield Group. As the global community wakes up to the cannabis opportunity, it's opening a wide range of opportunity for cannabis companies that have already established launching cannabis products including The Yield Growth Corp. (CSE:BOSS)(OTCQ:BOSQF), CannTrust Holdings Inc. (NASDAQ:CTST), Zenabis Global Inc. (OTCPK:ZBISF)(TSX:ZENA), Harborside Inc. (CSE:HBOR)(OTC:HSDEF) and Valens GoWorks Corp. (TSX-V:VGW)(OTCQX:VGWCF).
Valens establishes operations in The Greater Toronto Area with the acquisition of a leading beverage company
Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF) (the "Company" or "Valens"), a vertically integrated provider of industry leading extraction products and services, including a diverse suite of extraction methodologies, next generation cannabinoid delivery formats and an ISO 17025 accredited analytical lab, is pleased to announce that it has acquired all of the issued and outstanding shares of Southern Cliff Brands Inc. (d/b/a Pommies Cider Co.) ("Pommies") in a cash and stock deal (the "Acquisition"). The Acquisition and all planned capital expenditures are fully funded with cash on hand and current and projected cash flow from operations.
The Expanding CBD Market Begins to Witness Thawing Regulations
As the cannabis industry continues to develop, lawmakers and federal agencies are actively working towards expanding the market. Recently, U.S. Department of Agriculture (USDA) revealed new hemp regulations that would provide farmers with a bit of leeway. Under the draft rules, the USDA is proposing that cannabis plants with up to 0.5% THC levels become eligible for commercialization. Currently, all hemp plants must contain 0.3% or lower THC levels to be commercialized. The USDA noted that many of these farmers take necessary steps and precautions to ensure their hemp meets regulatory guidelines, however, sometimes they still produce unacceptable hemp. To note, 0.5% THC levels are similarly insignificant as 0.3% and will not cause psychoactive effects on the consumer. The new draft will provide farmers with a slight cushion in order to avoid potential charges as well as profit losses. Additionally, the proposal by the USDA may hint that federal regulators are beginning to tone down regulations amid widespread legalization efforts. And while the U.S. is one of the leading markets in the hemp industry, other international regions have also moved to adopt hemp-derived products. Notably, several countries have decided to legalize hemp-derived CBD specifically for medical applications. For instance, countries such as Australia, Colombia, France, Germany, New Zealand, Thailand, and the U.K. have all adopted CBD to treat certain medical conditions. Overall, hemp-derived CBD products are having a profound breakthrough throughout the world because of their therapeutic benefits, with researchers noting that CBD can effectively be used to treat a variety of medical ailments. However, health officials have also noted that research is still very limited. Nevertheless, researchers are continuing to ramp up clinical trials in order to fully understand the efficacy of CBD. And according to data compiled by Grand View Research, the global cannabidiol market is expected to reach USD 9.69 Billion by 2025 while registering a CAGR of 32.6% during the forecast period. Newleaf Brands Inc. (OTC: NLBIF) (CSE: NLB), Valens Groworks Corp. (OTC: VGWCF) (TSX-V: VGW), Sorrento Therapeutics, Inc. (NASDAQ: SRNE), iAnthus Capital Holdings, Inc. (OTC: ITHUF) (CSE: IAN), Auxly Cannabis Group Inc. (OTC: CBWTF) (TSX-V: XLY)
Shifting Regulations Signal of New Horizons for the Cannabis Industry
The hemp industry made headlines recently, as the U.S. Department of Agriculture (USDA) proposed new draft rules. Currently, under federal regulations, only hemp plants with 0.3% THC or lower are allowed to be commercialized. However, under the new rules, cannabis plants with up to 0.5% THC would be eligible for commercialization. Currently, the agency noted that any farmers who produced hemp which test at 0.3% to 0.5% THC levels must dispose of their inventory. The USDA noted that many of these farmers take necessary steps and precautions to ensure their hemp meets regulatory guidelines, however, sometimes they still produce unacceptable hemp. The new proposal will provide farmers with a slight cushion in order to avoid potential charges as well as profit losses. The proposal by the USDA hints that regulators may be toning down cannabis regulations in general amid widespread legalization efforts. However, to note, 0.5% THC levels are still very minuscule and will not cause psychoactive effects on the consumer. Nonetheless, the draft rules show that federal regulators are beginning to change regulations within the cannabis marketplace as the industry continues to advance. And while hemp-derived products are having a prominent impact throughout the U.S., states that have legalized adult-use cannabis are flourishing from increased marijuana-derived product sales. For instance, in the past six months, states such as Oregon, Colorado, and Washington had over 40% of adults 21 years and older try cannabis products. Notably, Colorado is already on track to report another record-breaking year in cannabis sales. And as states like Michigan and Illinois prepare to kickstart their recreational programs, the North American cannabis market is expected to witness immense growth. Specifically, according to data compiled by IMARC Group, the North American cannabis market was valued at USD 10.1 Billion in 2018. By 2024, the market is expected to reach USD 43.19 Billion, growing at a CAGR of 27.4% during the forecast period from 2019 to 2024. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Curaleaf Holdings, Inc. (OTC: CURLF) (CSE: CURA), Valens Groworks Corp. (OTC: VGWCF) (TSX-V: VGW)
Valens and BRNT Enter into Major White Label Deal with a Gross Revenue Potential to Valens of More Than $50 Million
Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF) (the "Company" or "Valens"), a vertically integrated provider of industry leading extraction products and services; including a diverse suite of extraction methodologies, next generation cannabinoid delivery formats and an ISO 17025 accredited analytical lab is pleased to announce a multi-year white label agreement (the "Agreement") with BRNT Ltd ("BRNT"), a leading, premium, cannabis ancillary company to launch a line of unique cannabis vape pens in Canada. Under the terms of the Agreement, Valens will provide high-quality cannabis extracts, filling services and national distribution of a line of custom-formulated BRNT-branded vape pens.
Canada Legalizes Cannabis Edibles, Beverages, Extracts and Other Derivative Products
On the first anniversary of Canadian cannabis legalization, "Legalization 2.0" or "Cannabis 2.0" will allow popular cannabis derivatives like edibles, infused beverages, and vapes to legally be bought and sold nationwide. Demand for these products is incredibly high, and most analysts believe that cannabis derivatives will allow companies to deliver on ambitious revenue projections for the still-growing pot industry. Because this market is so important, companies that are prepared to capitalize on cannabis-derived consumables--like BevCanna Enterprises Inc. (CSE:BEV) (OTCPK:BVNNF), MediPharm Labs Corp. (TSX:LABS) (OTCQX:MEDIF), Cronos Group (TSX:CRON) (NASDAQ:CRON), Valens GroWorks (TSXV:VGW) (OTCQX:VGWCF), and IAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQX:ITHUF)--are likely to ride the new wave of legalization and become the major industry players of tomorrow.