The Valens Company Announces Two Strategic Agreements with PMI Mexico

KELOWNA, BC – The Valens Company Inc. (TSX: VLNS) (NASDAQ: VLNS), a manufacturer of cannabis products, announced 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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The risks and uncertainties that may affect forward-looking statements include, among others, whether the Company will be able to fulfill all of listing requirements of the Nasdaq, Canadian regulatory risk, Australian regulatory risk, U.S. regulatory risk, U.S. border crossing and travel bans, the uncertainties, effects of and responses to the COVID-19 pandemic, reliance on licenses, expansion of facilities, competition, dependence on supply of cannabis and reliance on other key inputs, dependence on senior management and key personnel, general business risk and liability, regulation of the cannabis industry, change in laws, regulations and guidelines, compliance with laws, limited operating history, vulnerability to rising energy costs, unfavorable publicity or consumer perception, product liability, risks related to intellectual property, product recalls, difficulties with forecasts, management of growth and litigation, many of which are beyond the control of The Valens Company. For a more comprehensive discussion of the risks faced by The Valens Company, and which may cause the actual financial results, performance or achievements of The Valens Company to be materially different from estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to The Valens Company’s latest Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com or on The Valens Company’s website at www.thevalenscompany.com. The risks described in such Annual Information Form are hereby incorporated by reference herein. Although the forward-looking statements contained herein reflect management’s current beliefs and reasonable assumptions based upon information available to management as of the date hereof, The Valens Company cannot be certain that actual results will be consistent with such forward-looking information. The Valens Company cautions you not to place undue reliance upon any such forward-looking statements. The Valens Company 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 required by applicable law. Nothing herein should be construed as either an offer to sell or a solicitation to buy or sell securities of The Valens Company.

(This information is primarily sourced from The Valens Company Inc..  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).