Genovation Capital (CSE:GEC) has entered a binding committment letter with Valens Agritech regarding a business combination of the two companies.
As quoted in the press release:
Valens is a privately held biotechnology company based in the Okanagan Valley of British Columbia, focused on the emerging Cannabinoid market. Valens is in the cannabis cultivation and research business, which includes the assets and improvements of a 17,000 sf research and development facility in Winfield, and anticipated approvals, upon inspection from Health Canada, for a controlled drug and substance dealer’s license (including the activities of cultivation, production (extraction), packaging, possession, sale, transportation, delivery and research). Valens has also entered into advanced negotiations with respect to a business arrangement with, and potential acquisition of a commercial scale plant biology company operating on 12 acres of Agricultural Land Reserve with an existing 12,000 sf greenhouse. The operation carries out commercial scale tissue culture and genetic replication and various research projects, including initiatives under Provincial and Federal research grants.
The proposed Valens Transaction is an opportunity for the Company to progress towards becoming a global, vertically integrated medical cannabis company. Genovation intends to acquire Valens concurrently with MKHS LLC, the subject of a binding commitment letter announced November 25, 2015. The Company may complete either transaction independently as logistics may dictate.
Tim Tombe, Valens CEO, said:
We are excited to be working with Genovation and the team at MKHS in Arizona to further our vision for providing the purest strains of proprietary high-level-CBD, low-THC pharmaceutical product to some of the world’s top research facilities, as well as the rapidly growing natural health market. The synergies between our companies have already proven compelling. As medical trials increasingly prove the effectiveness of CBD materials in the treatment of some diseases, the industry will see explosive growth. Currently, there is no company in Canada legally capable of achieving genetically perfect, low-THC-value plants; we are poised to be that company.