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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index lost 14.21 points to 707.06 Monday.
Valens Groworks Corp. (VGW) lost 12 cents to $3.88 on 1.20 million shares. After the market closed, Valens announced that it had increased the scope of its extraction services agreement with Tilray Inc. Under the modified agreement, Valens will extract a minimum of 60,000 kilograms per year of dried cannabis and hemp biomass (remaining organic material after the flowers and/or seeds have been harvested from the plant), up from the initially agreed upon amount of 15,000 kilograms. The agreement is for two years.
Valens Groworks has extraction services agreements with other big players in the cannabis industry too, including The Green Organic Dutchman Holdings Ltd. (TGOD: $3.54), Organigram Inc. (OGI: $9.82), Hexo Corp. (HEXO: $8.76) and Canopy Growth Corp. (WEED: $58.06). The quantities per year for the Canopy Growth, Organigram and Green Organic deals are unknown, but for the Hexo deal (signed April 25, 2019), Hexo will supply Valens with 30,000 kg of cannabis flower/hemp biomass in the first year and 50,000 kg in the second year, which Valens will then process into resins (also known as hash, up to 60 per cent THC) and distillates (90 to 99 per cent THC) for Hexo. Valens is expecting to process the first shipment from Hexo near the start of the third quarter this year.
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