VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 1, 2017) - Valens GroWorks Corp. (CSE:VGW) (the "Company" or "Valens") is pleased to announce, further to its news release dated February 9, 2017, entering into a definitive share purchase agreement (the "Share Purchase Agreement") with DHomeNest Holdings Inc. and four minority employee-shareholders (collectively, the "Vendors") to acquire (the "Acquisition") Supra THC Services Inc. ("Supra THC").
Supra THC is a Health Canada-licensed cannabis testing lab with an established scientific team supporting its operations. The Share Purchase Agreement provides that Valens will acquire 100% of the issued and outstanding shares of Supra for $3.75 million, to be fully satisfied through the issuance of three million shares of Valens. The total share consideration is subject to a regulatory four month hold period as well as a 36-month escrow agreement.
Supra THC's Dealer's License allows for the possession of cannabis and related active ingredients as well as the production of extracts for the purpose of analysis. Expected revenue-generating activities include leading edge scientific research and development of products and services related to the medical cannabis industry, the supply of a superior line of products with a measurable standard of excellence, as well as toll processing for licensed producers, including the use of a proprietary process that generates 100% Cannabis oil without the addition of any solvents.
Effective March 1, 2017 Dr. Rob O'Brien, a principal shareholder and founder of Supra, joins Valens Agritech Ltd., the Company's wholly-owned subsidiary, as its President and Chief Science Officer (CSO). Dr. O'Brien is an expert in analytical instrumentation, has established a number of advanced analytical laboratories, and founded Supra Research and Development, the first spin off company from the UBC Okanagan campus, created to commercialize innovative biomass extraction technology.
Dr. O'Brien commented "This merger of interests will provide Supra with the necessary support for it to become the leading Analytical Service provider in the cannabis Sector. The scientific expertise and research network that Supra brings will amplify Valens' existing sector-leading production expertise to create a business that will be competitive with the most productive and leading-edge cannabis-based enterprise anywhere. This is truly an opportunity where the whole is significantly greater than the parts."
About Valens GroWorks Corp.
Valens GroWorks Corp is a Canadian Securities Exchange listed company with an aggressive acquisition strategy in progress, providing management, consulting, testing and support services to domestic and international licensees, as well as financing the buildout of established operations pursuant to its investments in Arizona. The Company seeks to capture a broad spectrum of medical marijuana users, as well as recreational users once legalized, in pursuit of its ambitious farm to pharma objectives.
The Company's wholly-owned subsidiary, Valens Agritech Ltd. ("VAL"), is a post-inspection applicant awaiting the granting of a Controlled Drugs and Substances Dealer's Licence for the cultivation and processing of marijuana. Based in the Okanagan Valley of British Columbia, VAL anticipates participation in clinical trial programs researching the efficacy of medical cannabis.
On behalf of the Board of Directors,
VALENS GROWORKS CORP.
Robert van Santen, Chief Executive Officer
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 "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. 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. 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. 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.
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