Valens, BRNT Enter White Label Agreement To Launch A Line Of Vape Pens

Valens GroWorks Corp. VGW VGWCF said Wednesday it has entered into a white label agreement with BRNT Ltd to launch a line of cannabis vape pens in Canada.

Per the agreement, Valens should supply cannabis extract, filing and distribution services for a line of BRNT-branded vape pens.

The initial term of the agreement is set to two years during which Valens should produce a minimum of 2.2 million BRNT-branded vape pens. The gross revenue potential to Valens under the agreement is projected to be in excess of $50 million in the first two years, under the final approval from distributors.

The company plans for the first shipment under the agreement to happen during the first fiscal quarter of 2020. Both companies agreed to split economics via a profit share structure.

"As Valens begins official production of next generation products for Cannabis 2.0, we are excited to be collaborating with BRNT to bring to market a line of differentiated, high quality, concentrate vape products for Canadian consumers", Tyler Robson, CEO of Valens GroWorks, said in a statement. "BRNT has shown impressive sales growth and market understanding through its ancillary offerings. In pairing their retail and product knowledge with Valens' processing and product development capabilities we believe this provides a solid foundation to provide a product with strong consumer appeal."

Valens traded at $2.17 per share on Thursday.

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