Valens stock is unmoved after Valens GroWorks Corp (TSXV:VGW) (OTCQX:VGWCF) announced an amended manufacturing and sales license agreement with SōRSE Technology Corporation, giving the company exclusive use of SōRSE’s cannabis infusion technology in Canada, Europe, Australia, and Mexico.
Quality and Safety a Priority
The SōRSE emulsion technology transforms cannabis oil into water-soluble forms for use in beverages, edibles, topicals, and other consumer products without the burden of cannabis’s taste, color, or smell. What is pivotal about this technology is that it allows the infused products to maintain potency when heated, chilled, or frozen, as well as providing a faster onset time compared to rival products. The licensing of this technology could be key to helping Valens stock capitalize on the expanded product demand in the 2.0 market.
“As we move into “Cannabis 2.0″ in Canada, we believe the products that offer consistent, high quality and predictable user experiences, like those we are able to create with SōRSE, will capture the lion’s share of attention and be the hallmark for brand development in a strict regulatory environment,” said Jeff Fallows, President of Valens GroWorks. Howard Lee, CEO of SōRSE, pointed to the need to prioritize quality and safety with such 2.0 products, a value he said was shared with Valens. Valens shares are currently trading for $2.91 in Toronto.
Is Valens Stock One to Watch?
This is not the first such deal that Valens GroWorks has made as it prepares for the launch of the 2.0 market. Last month, the Kelowna-based company announced that it had signed a multi-year white label agreement with BRNT Ltd to launch a line of cannabis vape pens in Canada. As part of that deal, Valens will produce 2.2 million vapes pens over a two-and-a-half-year period, which could potentially generate revenue of more than $50 million CAD. With the first set of 2.0 products set to hit shelves next week, Valens stock certainly looks like one to watch in the coming weeks and months.
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