SōRSE Technology Expands Exclusive Licensing Agreement with The Valens Company to Bring Cannabis Emulsion Technology to New International Markets
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Written by Megan | December 19th, 2019
SōRSE Technology, the leading water-soluble CBD, hemp and terpene emulsion provider for infused CPG brands, announced an amended manufacturing and sales license agreement with Canadian cannabinoid-based product company The Valens Company. The agreement grants Valens a license to produce, market, package, sell and distribute products made with SōRSE's proprietary emulsion technology to international markets in Europe, Australia and Mexico, in addition to Canada.
The agreement also allows for Valens to produce and sell SōRSE's portfolio of branded products in the agreed upon territories. This includes the top 2 infused beverages in Washington State -- Happy Apple, a cannabis-infused apple cider, and Major, a cannabis-infused fruit drink.
The initial five-year agreement will increase the addressable market by almost 20 times, from 37 million people in the current Canadian agreement to 700 million people in the new international agreement. SōRSE Technology currently works with over 30 brand clients in the United States, including leading CBD beverage makers Mad Tasty and Vybes. SōRSE Technology provides product developers with a CBD solution that is shelf stable, homogeneous, and better tasting with the highest safety and quality standards.
"We are proud to expand our partnership with Valens and leverage their near-term access to various global markets," said Howard Lee, CEO of SōRSE. "Over the last year, our team of more than 40 plus professionals has continued to actively focus on creating and developing innovative, desirable products and formats of consumption for cannabis consumers. As emulsion technology becomes more popular through new delivery methods such as ingestion, transdermal, topical and more, it is imperative that quality and safety in consumption leads all innovation in this sector. This is a shared value and mandate that our teams at SōRSE and Valens both prioritize. We look forward to continuing this working relationship with Valens and introducing our award-winning emulsion technology to global markets."
"We have seen incredible interest from our current and potential clients regarding the SōRSE emulsion technology and we are thrilled to finalize the expanded license agreement with SōRSE," said Tyler Robson, CEO of Valens. "We expect the expanded exclusive territory will provide our clients with improved visibility and greater opportunity as they look to build global businesses around cannabis-infused products over the long term."
The SōRSE emulsion technology, which offers an improved flavor profile, consistent dosing and experience, and safe ingredients, changes the landscape for future cannabis infused beverages, food items, and topicals. In the past, ingestibles have been plagued by the stigmas associated with edibles - namely inconsistent dosing and experience, and bad taste. With the expanded agreement, SōRSE can eliminate the typical concerns around ingestibles around the world, making edibles and topicals a preferred method of consumption for consumers.
The manufacturing and distribution agreement between SōRSE Technology and The Valens Company was closed at $10 million USD, comprised of $6 million USD in cash and $4 million USD to be issued in Valens common shares. The agreement carries an initial 5-year exclusive term with a 2-year renewal of the exclusivity, subject to operational and financial performance. Valens will also transfer royalty payments to SōRSE calculated as a percentage of sales and will be subject to an annual minimum of $2 million over the 5-year term.
About SōRSE Technology
SōRSE Technology is a water-soluble CBD, hemp extract and terpene emulsion technology designed for producers to provide consumers with a better cannabis experience with near-perfect dosing, stability, and safe ingredients. Our patented technology converts oil into SōRSE, our water-soluble emulsion, for seamless integration as an ingredient in a beverage, food item or topical. For more information, visit www.sorsetech.com
About The Valens Company
The Valens Company is a global leader in the end-to-end development and manufacturing of innovative, cannabinoid-based products. The Company is focused on being the partner of choice for leading Canadian and international cannabis brands by providing best-in-class, proprietary services including CO2, ethanol, hydrocarbon, solvent-less and terpene extraction, analytical testing, formulation and white label product development and manufacturing. Valens is the largest third-party extraction Company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass at our purpose-built facility in Kelowna, British Columbia which is in the process of becoming European Union (EU) Good Manufacturing Practices (GMP) compliant. The Valens Company currently offers a wide range of product formats, including tinctures, two-piece caps, soft gels, oral sprays and vape pens as well as beverages, concentrates, topicals, edibles, injectables, natural health products and has a strong pipeline of next generation products in development for future release. Finally, the Company's wholly-owned subsidiary Valens Labs is a Health Canada licensed ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant-Based Science. For more information, please visit http://thevalenscompany.com. The Company's investor deck can be found specifically at http://thevalenscompany.com/investors/
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