Encouraging news from Valens Groworks today, which announced that it has signed a partnership agreement with Speakeasy Cannabis Club.

"This partnership with Speakeasy dovetails neatly with our expansion objectives. As a specialist in the extraction of cannabis, Valens creates some of the best oils in the world, with our proprietary process creating a product that is clear, transparent 100% cannabis oil,” said Valens chief executive officer, Tyler Robson.

As well, Speakeasy is going to source 2500-5000kg of cannabis per month for Valens.

Valens focuses on the extraction of cannabis into oil, and has one of Canada's highest extraction processing capabilities. Speakeasy is a cannabis grower with a sizeable 290-acre facility in British Columbia’s South Okanagan Valley.

“Companies like Speakeasy are recognizing Valens' expertise in the extraction business. By helping us secure a consistent quality product for our extraction process we jointly benefit to increase our distribution platform internationally,” said Robson. “We are extremely excited to move forward with Speakeasy."

A few details? Valens will provide Speakasy with a research and development platform, export cannabis oils/concentrates internationally and provide a processing facility. Speakeasy will introduce Valens to its international distribution network. There is a 30-day due diligence period.

"This deal with Valens is the first part of a series of arrangements that will bring both Speakeasy and Valens to the forefront of the medical and recreational extract market both domestically and internationally, giving Speakeasy a high volume of assured sales and providing Valens a consistent supply of high quality extract material produced at our site in Rock Creek," said Marc Green, chief executive officer of Speakeasy.

Valens shares were down 5.4% to C$1.23