The Green Organic Dutchman will supply Valens with significant quantities of cannabis and hemp and Valens will provide extraction services that will process it into resins and distillates
() (OTCQX:TGODF) said Monday it has struck a multi-year extraction services contract with Valens GroWorks Corporation () (OTCMKTS:VGWCF).
Under the terms of the initial two-year deal, The Green Organic Dutchman will supply Valens with significant quantities of cannabis and hemp and Valens will provide extraction services that will process it into resins and distillates.
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Partnering with Valens is set to allow for the early market entry of The Green Organic Dutchman’s organic hemp-derived CBD (cannabidiol) product lines within the coming months.
The Green Organic Dutchman intends to use the concentrated cannabinoid resins and distillates to produce oils, sprays and capsules.
The agreement calls for The Green Organic Dutchman to supply Valens with a minimum of 30,000 kg of cannabis and hemp biomass in the first year, increasing to 50,000 kg in year two.
Valens expects the first shipment to arrive and to begin processing early in the second quarter.
“The ability to partner with skilled and specialized extraction operators such as Valens will add significant bench strength to TGOD’s already robust extraction capabilities in Canada, Poland and Jamaica,” said Brian Athaide, director and CEO of TGOD.
Tyler Robson, CEO of Valens GroWorks, is similarly bullish on the partnership.
“Valens looks forward to helping accelerate TGOD’s time to market with the launch of its hemp-derived CBD product line in the coming months,” Robson said.
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Headquartered in Toronto, The Green Organic Dutchman boasts operations focused on medical cannabis in Canada, Europe, the Caribbean and Latin America, as well as the Canadian recreational market.
Valens, which is based in Kelowna, British Columbia, meanwhile, is a cannabis company focused on extraction, distillation and cannabinoid isolation and purification as well as quality testing.
Valens GroWorks shares closed up 5.5% to finish at C$2.70 in Canadian trade on Friday while The Green Organic Dutchman shares held steady at C$4.26.
Contact Ellen Kelleher at [email protected]
