Valens stock is the green this week after the company announced two new multi-year agreements as well as a rebranding from Valens GroWorks Corp to The Valens Company (TSXV:VLNS) (OTCQX:VLNCF).
Rebranding Reflective of Strong Year for Valens
The Kelowna-based cannabis extraction firm announced the name change on December 16 in order to reflect its focus on the development of cannabinoid-based products and plans to enter international markets in 2020. As a result of the rebranding, the company will also trade under a new ticker of VLNS on the TSX Venture Exchange and VLNCF on the OTCQX. Valens shares are up 2.7% during Monday trading.
"The introduction of our new parent company brand, The Valens Company, on the eve of Cannabis 2.0, is a reflection of our growth and transformation over the past few years," said CEO Tyler Robson. Valens stock has been one of the best performers on the Canadian cannabis market in the first full year of legalization, gaining over 160% in the last 12 months as extraction services become key to the launch of the cannabis 2.o market.
New Agreements Drive Further Gains in Valens Stock
Valens stock was further boosted last week after the firm announced two new multi-year agreements. The first of these deals is a four-year extraction and white label agreement with Emerald Health Therapeutics Inc (TSXV:EMH) (OTCQX:EMHTF), which will see the company provide Valens with an annual minimum quantity of 10,000 kilograms of cannabis and hemp biomass that it will then process on a fee for service basis into premium quality resins and distillates.
The second of these deals will see The Valens Company supply edibles producer Dynaleo with distillate or SōRSE emulsions containing a minimum of 40 kilograms of active THC or CBD cannabinoids for use in the production of edibles. The term of this deal is an initial two years with automatic one-year renewals or additional terms. During the additional terms, Dynaleo will purchase a minimum of 50 kilograms of cannabis distillate in the third year, and 70 kilograms in the fourth. Valens stock has gained 11.25% to trade at $3.36 since the announcement of these deals.
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