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Valens GroWorks (CSE: VGW) Announced a Significant Professional Services Agreement

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Valens GroWorks, together with its wholly owned subsidiary, Valens Agritech, have announced a significant professional services agreement in the cannabis sector. Following lengthy negotiations, Valens has been formally engaged by Arizona-based marijuana cultivation and medicinal dispensary MKHS LLC and it affiliate MKV Ventures 1 LLC to provide services under a 5-year, renewable agreement.

Additional Information:

Company: Valens GroWorks
Website: http://www.ValensGroWorks.ca
Stock Symbol: CSE: VGW
Date Published: Feb 15, 2017
Transcript: Available

Video Transcript:

I’m Isabelle Chatelain for Investmentpitch Media

Valens GroWorks, together with its wholly owned subsidiary, Valens Agritech, have announced a significant professional services agreement in the cannabis sector.

Following lengthy negotiations, Valens has been formally engaged by Arizona-based marijuana cultivation and medicinal dispensary MKHS LLC and it affiliate MKV Ventures 1 LLC to provide services under a 5-year, renewable agreement.

In addition, MKHS issued Valens a promissory note in the amount of US$1,212,500 to secure previous advances, effectively settling all outstanding issues between the parties.

MKHS is now positioned to complete the buildout of the 28,000-square foot Farmtek greenhouse expansion announced in 2016.

Principal and interest on the promissory note, along with US$30,000 in cost recoveries for past accrued fees, will be paid to Valens over a 5-year term, beginning at the end of the 3rd month following the buildout, giving MKHS time to complete its initial harvest.

Under the terms of the professional services agreement, Valens will receive US$60,000 monthly for management services, for a 5-year period, along with certain other consulting fees, also starting 3 months after the buildout.

MKHS currently supplies medical marijuana under the Arizona Medical Marijuana Act, operating an 11,000-square foot cultivation warehouse, commercial kitchen and extraction facility.

MKHS also has a nearby fully-secured 9.5 acre operation including a 3,000-square foot automated greenhouse and a 22,000-square foot Airstream wind-assisted, air supported greenhouse.

It also operates two state-licensed “healing center” dispensaries, which distribute their own in-house prepared, branded, line of edibles, concentrates and extracts.

Valens’ Okanagan Valley, B.C. wholly-owned subsidiary is a post-inspection applicant awaiting the granting of a Controlled Drugs and Substances Dealer’s License for the cultivation and processing of marijuana.

Its assets include a state-of-the-art 17,000 square foot research and development facility.

Continuing with its expansion plans, Valens recently announced two letters of intent.

The first, a proposed acquisition of 80% of Island Green Cure, a B.C. based final stage applicant under the Access to Cannabis Purposes Regulations, and the second, a proposed acquisition of 100% of Supra THC Services.

Supra is a Kelowna, B.C. based Health Canada licensed cannabis testing lab.

The company plans to announce terms of a proposed $5 million financing shortly.

The shares are currently trading at $1.30

For more information, please visit the company’s websites www.ValensGroWorks.ca, contact Greg Patchell at 250-860-8634 or by email at info@ValensGroWorks.ca.


I’m Isabelle Chatelain for Investmentpitch Media