Connect with us

Hi, what are you looking for?

Tuesday, Jun 28, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Valens accesses GMP facility through Australian partnership

The five-year deal allows the company to access 85% operational capacity of a Queensland facility

Valens accesses GMP facility through Australian partnership
The firm's partnership will access to markets in Latin America, Europe, U.K. and the Asia-Pacific regions. Image via Valens

The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) has struck a five-year deal with an Australian healthcare and pharmaceuticals firm that will expand international reach through a good manufacturing practices (GMP) facility.

In a statement Wednesday, the Kelowna, B.C.-based company said it’s partnered with Epsilon Healthcare Limited (ASX: EPN) to access its GMP facility in Australia, providing Valens with access to markets in Latin America, Europe, U.K. and the Asia-Pacific regions.

Epsilon’s Southport Facility in Queensland is the largest cannabis manufacturing facility in the southern hemisphere, the firm adds, and it’s the largest at domestic scale with Therapeutic Good Administration and EU GMP capabilities.

All operational and capital expenditure of the Australian facility will be funded by Valens in return for “preferential access for up to 85 per cent of the operational capacity of the Southport Facility over the next five years, with an option to extend this arrangement for an additional six years.”

Read more: Valens set to acquire Citizen Stash for $54.3M

Valens’s Australian partner, Cannvalate PTY Ltd, will distribute products. The company says it will be the largest quantity of products provided through Cannvalate to date.

The Epsilon deal marks the first GMP-manufactured products to be sold through Valens in Australia.

“With this partnership we have fulfilled our promise to achieve GMP manufacturing in 2021 and we have gained access to international cannabis markets through the ‘Valens way,’ utilizing an asset-light approach that allows us to export to GMP markets globally,” Valens CEO Tyler Robson said in a statement.

“With the rapid unit volume growth coming out of our K2 facility that was built to GMP standards, we believe this agreement offers us the best of both worlds — access to GMP manufacturing without giving up on domestic revenue growth opportunities.”

Company stock dropped 6.27 per cent Wednesday to $2.69 on the Toronto Stock Exchange.

Read more: Valens enters US CBD market with purchase of Florida firm


Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Kathryn Tindale on Twitter

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Health and Safety

Science doesn't know yet, but one psychedelic researcher is chasing clues to see if it can


As more medium-to-small producers came into play this year, great weed started hitting legal shelves at fairer prices


Punishments for possession include caning and the death penalty. Despite a global trend of reform, The Fine City remains staunch in its anti-drug stance


While legal weed businesses decry enforcement of their accounts, the platform says it's keeping its all-ages community safe