Kelowna, B.C., October 30, 2019 – PRESS RELEASE – Valens GroWorks Corp., a vertically integrated provider of extraction products and services, including a diverse suite of extraction methodologies, next generation cannabinoid delivery formats and an ISO 17025 accredited analytical lab, has announced a multi-year white label agreement with BRNT Ltd., a 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.
The initial term of the agreement will be for two years, with two successive one-year renewal options, and relates to the production and sale of a guaranteed minimum of 2.2 million BRNT-branded vape pens, with the gross revenue potential to Valens under the Agreement of over $50 million in the first two years, all subject to final acceptance from provincial distributors, including of the proposed price per unit. Under the terms of the agreement, the two parties will split economics through a profit share structure reflective of the respective efforts of each party. Valens expects the first shipment under the agreement to take place in the first fiscal quarter of 2020. The company currently holds all required licensing from Health Canada to carry out its obligations under the Agreement.
BRNT is known for its rapid national growth, brand quality, industry experience and commitment to product excellence. BRNT currently participates in the ancillary products sector providing premium, high-quality cannabis accessories that are currently available in over 170 stores across Canada with international expansion underway including its newest line, Made By, a line of single-source cannabis extract vaporizers with uniquely designed hardware.
“As Valens begins official production of next generation products for Cannabis 2.0, we are excited to be collaborating with BRNT to bring to market a line of differentiated, high quality, concentrate vape products for Canadian consumers,” said Tyler Robson, CEO of Valens GroWorks. “BRNT has shown impressive sales growth and market understanding through its ancillary offerings. In pairing their retail and product knowledge with Valens’ processing and product development capabilities we believe this provides a solid foundation to provide a product with strong consumer appeal.”
“Valens has demonstrated a commitment to cannabis extraction on a global scale that is driven by passion and quality. It was a natural fit for BRNT to collaborate with Valens to bring the Made By vaporizers brand to life with a partner that can mirror our globally recognized signature design aesthetic and brand development capabilities,” said Simon Grigenas, CEO of BRNT Group. “BRNT and Valens are setting a new industry standard by creating meaningful brands and products through a focused, profitable approach, as opposed to the traditional vertical integration seen today."