The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) (the “Company,” “The Valens Company” or “Valens”), a leading manufacturer of cannabis products, today announced it has signed a regional distribution agreement with APOTEKA SRL (“APOTEKA”), a part of Grupo Farmanova Intermed “GFI Costa Rica”, a pharmaceutical holding company based in Costa Rica with operations throughout Central America and the Caribbean. Under the agreement, APOTEKA will bring Valens’ nūance brand, with future plans to include the Green Roads brand, into three core Central American markets: Costa Rica, the Dominican Republic and Panama.
Valens has developed two CBD tinctures for APOTEKA that combine known wellness ingredients with CBD. The products will be manufactured by Green Roads and are made with coconut MCT oil. They come in coconut and peppermint flavor, with added terpenes, and will be available in two concentrations: 900 and 1500 milligrams of CBD. Both tinctures have been carefully developed to match the tastes of local markets.
Tyler Robson, Chief Executive Officer and Chair of The Valens Company, said, “This partnership with APOTEKA, part of GFI Costa Rica a multiregional conglomerate with a 45-year track record, is consistent with our distribution first, asset light, growth model in international markets. The partnership represents a strategic expansion into Central America where APOTEKA will be distributing these products into regions including: Costa Rica, the Dominican Republic and Panama. With limited competition currently in these markets, and a reputable distribution partner in APOTEKA, we see a compelling opportunity to further develop an innovative product portfolio, establish a foothold in the region and expand our strategy across other Central American countries in the future as more countries liberalize their cannabis laws.”
Australia Market Update
The Company also announced it has secured AUS$540,000 of initial orders for GMP product from its Australian distribution partner, Cannvalate PTY Ltd (“Cannvalate”). This follows the Company’s recent announcement that it had secured access to GMP Manufacturing in Australia through an exclusive partnership with Epsilon Healthcare, furthering its international expansion to GMP markets in Latin America, Europe, UK and the Asia-Pacific regions.
Jeff Fallows, President of The Valens Company, said, “We are excited to report our first GMP production through the Southport facility, marking our further expansion into the Australian market. The order represents Valens taking advantage of Epsilon’s large scale GMP manufacturing capability, with the capacity and means to provide further accelerated access to Europe through their TGA and EU GMP capabilities. Through Cannvalate’s significant local market presence and leading distribution platform, Valens is well placed with strategic access to a market we see through recent trends being poised for dramatic growth.”
Valens expects to continue to receive purchase orders of a similar or greater value under this arrangement on an ongoing basis, which is representative of the global shift to GMP and EU GMP production standards that the Company is now able to deliver through its partnership with Epsilon Healthcare.