Valens GroWorks Corp (TSXV:VGW) (OTCQX:VGWCF) has announced that it has received an amended sales license from Health Canada, yet VGW stock is down 3%.
Significant Step Forward for Valens
The amended license is a significant step forward for the BC-based firm as it now allows the company to sell its product directly to provincial distributors and regulators. Previously, the company would have to acquire cannabis product from a licensed producer, extract it, and then resell the extract back to the producer. While this new arrangement removes a major step in the supply chain, VGW stock has not reacted favorably yet, as it trades down nearly 3% on Monday.
"This amended license represents another significant milestone for the Company," said Tyler Robson, CEO of Valens GroWorks. "We are excited to be able to utilize this license, our industry-leading extraction, IP and formulation services along with our strategic partnerships with companies like Shoppers Drug Mart, to provide our white label partners access to a comprehensive service offering."
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VGW Stock Up 150% in 2019
As mentioned by Robson, last week Valens GroWorks entered into a new partnership with major Canadian retailer Shopper Drug Mart, which will see the Kelowna cannabis extractor's range of cannabis oil-based products hit shelves across the country. It marks the first time a third party has reached such a deal with Shoppers, which has over 1,300 stores across nine Canadian provinces. Despite VGW stock trading in the red today, it is still up over 150% in 2019 as the company continues its retail expansion.
The company also offered an update on its new white-label manufacturing facility in conjunction with today's announcement. Valens' new plant is expected to increase extraction capacity to over one million kilograms per annum and will see the company substantially increase the development and manufacturing of products such as vapes, infused beverages, concentrates, and edibles. With legalization 2.0 opening up the market for such products by the end of the year, VGW stock looks only set to make further gains from here.
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