Valens GroWorks (TSXV:VGW) (OTCQX:VGWCF) has announced a supply deal with Shoppers Drug Mart, yet Valens stock is mostly unphased.
The First Third-Party to Reach Such a Deal
Valens, a market leader in cannabis extraction products and services, has become the first third-party cannabis company to reach a supply agreement with the Canadian pharmaceutical giant. The deal will see Valens GroWorks supply Shoppers with a range of oil-based products such as gel-caps, tinctures, vape cartridges, and topicals. Despite the positive news, investors are on the fence this morning, with Valens stock marginally in the red.
"Valens is proud to be chosen as the first third party extraction and product development company to supply cannabis oil products to one of the most recognized pharmacy retailers in Canada," said Tyler Robson, CEO of Valens GroWorks. "This new partnership will advance our product development portfolio as we continue to enhance our capabilities and increase our market presence," he added. Valens stock is currently valued at $2.79, which is an increase of over 150% in the year to date.
Valens Stock Up 150% This Year
Valens GroWorks seems to be going from strength to strength at the minute, having last week announced a five-year partnership with Iconic Brewing to produce cannabis-infused beverages, as well as teasing record quarterly results. The deal will see Valens provide its expertise in cannabis extraction and formulation services, while Iconic will brand and market the final product. According to guidance issued by the company, Valens expects to double its revenue to nearly $17 million CAD in Q3. This positive news also saw Valens stock drop by 4%.
With Valens shares on an upward trajectory for most of the year, this trend looks set to continue as the company consistently announces proactive partnerships. The demand for cannabis extraction services and products is also set for a huge boost with the arrival of legalization 2.o next month, which will allow for the commercialization of cannabis derivatives. Valens GroWorks is one pot stock that looks to be positioning itself very strongly to take advantage of what some analysts believe could be a $25 billion USD market by 2025.
Featured Image: DepositPhotos © Nadki