Kelowna, BC -- October 2, 2018 -- InvestorsHub NewsWire --
Valens GroWorks Corp. (CSE: VGW) (the
"Company" or "Valens"), a
multi-licensed, vertically integrated provider of cannabis products
and services utilizing proprietary extraction processes is pleased
to announce that it has signed a two-part, multi-year agreement
with Tarukino Holdings, Inc. ("Tarukino"). The agreement allows
Valens to further expand on its product and service offerings to
compliment the extraction market while also securing a strong
foothold in the developing Canadian cannabis-infused beverage,
edible and topical categories.
Canadian Rights to Leading Proprietary Emulsion
Technology SRSE™
Under the agreement, Tarukino grants Valens the exclusive
Canadian rights to the production and distribution of its
proprietary emulsion technology that transforms cannabis oil and
oil-based terpenes into water-soluble forms for use in beverages,
edibles, topicals and other consumer products. This technology,
better known in the industry as SRSE™, allows cannabis infused
products to maintain potency when heated, chilled or frozen, and
removes all cannabis taste and smell, enabling Valens to develop
their own innovative self branded products while making SRSE™
directly available to the Canadian market.
"One of the many key benefits of utilizing "SRSE™ technology in
edibles and infused beverages includes being able to dramatically
decrease the time for onset and how long it lasts after
consumption. This will improve the experience for our consumers and
ultimately paves the path for how we believe cannabis will be
consumed in the future" said Tyler Robson, CEO, Valens
GroWorks.
Canadian Rights to Top Performing Cannabis-Infused
Beverage Brands
This multi-year agreement also provides Valens with the
exclusive rights to produce, sell and distribute, in Canada, when
and where permitted, Tarukino branded products including Happy
Apple™, a cannabis-infused sparkling cider, recognized as the
number one selling cannabis beverage in Washington state, and
Pearl20™, a cannabis infused food and beverage mixer,
the first and currently only product of its kind on the market,
which is easily incorporated into a wide variety of edible and
topical products, revolutionizing the practical application of
medical cannabis and medical product development.
In exchange for these exclusive Canadian rights, the Company has
agreed to grant Tarukino 4,300,000 shares of the Company on signing
the agreement, 1,000,000 warrants that vest based on certain future
milestones and a decreasing royalty on revenue related to the
associated products and technologies over the term of the
agreement. The warrants are exercisable at prices ranging
from $3.50 to $4.00 per share for a five year term from the date of
issuance.
"Tarukino has been able to develop and successfully demonstrate
through scalable commercial application one of the only proven
water-soluble cannabis products in the industry, with a confirmed
consumer market uptake through its highly successful brands
including Happy Apple™ and Pearl20™", said Tyler Robson,
CEO, Valens GroWorks. "In addition to holding the exclusive
rights for Tarukino's beverage brands in the Canadian market, this
partnership gives Valens access to the proprietary technology of
SRSE™, which will enable Valens to expand on its offerings across
numerous sectors of the cannabis space, particularly edibles and
beverages which the Company believes will be one of the next
categories addressed by Health Canada in relation to the
legalization of recreational cannabis in the Canadian market.
Tarukino's team consists of some of the world's top scientists, and
we are pleased to have access to their knowledge and expertise over
the coming years."
"Our team at Tarukino is made up of innovators who thrive on the
science of the cannabis plant. When given the opportunity to work
with Valens, a team who shares the same passion and knowledge-base
for cannabis extraction techniques and applications, we were
thrilled," said Howard Lee, CEO of Tarukino Holdings, Inc. "SRSE™
is the first and leading technology that produces, near perfect
doses, entirely taste and odor free cannabis emulsions for infusion
of medical and recreational products, and we are pleased to offer
this technology, and our brands, to the Canadian market through our
partnership with Valens."
Valens and Tarukino will work closely together over the coming
months to manufacture SRSE™ from Valens' Canadian-based operations,
which we target to be available for commercial use in 2019, subject
to Health Canada permitting the sale of cannabis infused edibles
and beverages.
About Tarukino
Tarukino Holdings Inc is a research and development company that
licenses its technology and brands to world leading Cannabis
producers and processors. The proprietary oil emulsion
technology transforms cannabis oils and oil based terpenes into
water-soluble forms, including beverages, edibles, tinctures and
topical based products. Branded as SRSE™, Tarukino's
technology is available from 3rd Party processors in
liquid and soon to be powder form. SRSE™ can also be used for
Hemp derived CBD products. Tarukino has more than 40 licensed
branded products using SRSE and selling in multiple states in the
USA. For more information visit this website http://sorselab.com/
About Valens GroWorks
Valens GroWorks Corp. is a vertically integrated provider of
Canadian cannabis products developed from our proprietary
extraction techniques, with three wholly-owned subsidiaries located
in and around Kelowna, BC. Subsidiary Valens Agritech has initiated
cannabis production, processing and sales under a Health Canada
Dealer's Licence, which includes a supply agreement with Canopy
Growth Corporation under their extensive CraftGrow distribution
network. Subsidiary Supra THC Services is a Health Canada licensed
ISO 17025 accredited cannabis testing lab providing sector-leading
analytical services and has partnered with Thermo Fisher Scientific
to develop a Centre of Excellence in Plant Based Medicine
Analytics. Subsidiary Valens Farms is in the process of becoming a
purpose-built facility in compliance with European Union (EU) Good
Manufacturing Practices (GMP) standards, ensuring the product from
this facility can be exported anywhere in the world where Cannabis
is nationally legal for medical or adult usage purposes. For more
information, please visit http://valensgroworks.com, http://www.valensagritech.com and http://www.suprathc.ca.
Notice regarding Forward Looking Statements
This news release contains certain "forward-looking statements"
within the meaning of such statements under applicable securities
law. Forward-looking statements are frequently characterized by
words such as "anticipates", "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed", "positioned" and other similar
words, or statements that certain events or conditions "may" or
"will" occur, and include statements relating to the future sale of
cannabis infused edibles and beverages in Canada. These statements
are only predictions. Various assumptions were used in drawing the
conclusions or making the projections contained in the
forward-looking statements throughout this news release, including
the assumption that the regulations under the Cannabis Act will be
amended to permit the sale of Cannabis infused edibles and
beverages in Canada. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements,
including the risk that Health Canada will delay or not permit the
sale of cannabis infused edibles or beverages. The Corporation is
under no obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.
The CSE or other regulatory authority has not reviewed, approved
or disapproved the contents of this press release. We seek Safe
Harbour.
SOURCE Valens GroWorks Corp.