KELOWNA, B.C. – The Valens Company Inc. (TSX: VLNS) (NASDAQ: VLNS) (the “Company,” “The Valens Company” or “Valens”), a leading manufacturer of cannabis products, announced today two agreements with PMI Mexico, a subsidiary of Merger Group, one of the main drug suppliers of the Mexican government. Under the first agreement, Valens will supply CBD for PMI’s ongoing pharmacokinetic (PK) stage medical trials, which are focused on anti-inflammatory applications of medical-grade, nano-water emulsified CBD oil. The clinical trial has already been approved by The Medical Ethics Board of Mexico. The clinical trial, which is set to begin once Valens shipments arrive in Q1 of 2022, will be conducted across private hospitals in Mexico. At the conclusion of the trial, Valens will be the sole manufacturer and global distributor in collaboration with PMI.
Under the second agreement, Valens will manufacture and distribute CBD-infused and uninfused PredilifeⓇ products globally while PMI will be responsible for distribution of the PredilifeⓇ products in Mexico. Predilife is an agave-based prebiotic powder that has been submitted as a drug master file” (DMF) to the FDA. Valens will manufacture the products at its Green Roads facility in Florida, where it will be infused with CBD as required and then packaged and distributed through Valens’ third-party supplier channels across Asia, U.S., Latin America and Mexico. The formulation will be offered in both powder and liquid sachets, initially for human consumption, with animal variations planned for the second half of 2022.
“The relationship we have built with PMI Mexico marks an important milestone for Valens’ international expansion and the beginning of our Central and Latin America strategy,” said Tyler Robson, CEO, Chair & Co-founder of The Valens Company. “Predilife has significant and unique versatility in terms of reach and market potential given it can be consumed infused or uninfused with CBD. This enables unimpeded distribution of the product regardless of local cannabis regulations, providing Valens access to several international markets. This agreement diversifies our global strategy and increases our revenue streams through creative, non-traditional strategies that separate us from our peers.”
Gustavo Bustillo PhD, Scientific Director of PMI said, “In Valens we found a technological partner that was capable of providing us not only the required quality but also the technical support and necessary documents needed to comply with pharmaceutical regulations. We look forward to initiating our commercial relationship and watching it expand globally over the coming years.”
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About The Valens Company
The Valens Company is a global leader in the end-to-end development and manufacturing of innovative, cannabinoid based products. The Valens Company is focused on being the partner of choice for leading Canadian and international cannabis brands by providing best-in-class, proprietary services including CO2, ethanol, hydrocarbon, solvent-less and terpene extraction, analytical testing, formulation and product development and custom manufacturing. Valens is the largest third-party extraction company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass at our purpose-built facility in Kelowna, British Columbia which is in the process of becoming European Union (EU) Good Manufacturing Practices (GMP) compliant. The Valens Company currently offers a wide range of product formats, including tinctures, two-piece caps, soft gels, oral sprays and vape pens as well as beverages, concentrates, topicals, edibles, injectables, natural health products and has a strong pipeline of next-generation products in development for future release. Finally, The Valens Company’s wholly-owned subsidiary Valens Labs 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 Science. For more information, please visit https://thevalenscompany.com. The Valens Company’s investor deck can be found specifically at https://thevalenscompany.com/investors/.
About Merger Group
Merger Group, based in Newark, Delaware is a pioneer in developing drugs and supplements with over 20 years of experience across the pharmaceutical industry. Merger Group is dedicated to the research, innovation and development of both medicine and natural and herbal products which can help progress the lifestyles of its users by improving their health and well-being. PMI Mexico, a division of Merger Group, is a subsidiary dedicated to the research, clinical studies, review and integration of technical documentation to obtain health records, coordination of logistics and import permits.