The company received authorization to contract in the province of Quebec from the Autorité des marchés publics.

The Valens Company Inc (TSX:VLNS, OTCQX:VLNCF), a leading manufacturer of cannabis products, announced that it has received authorization to contract or subcontract with a public body from the Autorité des marchés publics (AMP), in Quebec.

The Kelowna, British Columbia-based company said that with this authorization, it can now apply to become a registered vendor to supply goods and services in Quebec. This marks a significant step toward entering the third-largest cannabis market in Canada, representing around 17% of Canadian cannabis retail sales in the country and approximately 22% of the Canadian population,” according to Statistics Canada.

"We are excited to announce that we are one step closer to bringing Valens' trusted and innovative products to the Quebec cannabis market," Valens co-founder and CEO Tyler Robson said in a statement.  

"Our team has been working tirelessly to expand our domestic distribution network and Quebec would represent the fourth domestic market we have entered since the beginning of fiscal 2021. We look forward to updating our shareholders on our progress as we continue to work toward increasing our presence here at home in Canada."

Quebec is expected to be the seventh province added to Valens’ domestic distribution network consisting of six provinces and one territory, including Alberta, British Columbia, Manitoba, New Brunswick, Ontario, Saskatchewan and Yukon Territory.

“While receiving authorization to contract in Quebec does not guarantee entry into the provincial cannabis market, it fulfills a fundamental requirement in the process of achieving vendor status,” noted the company.

Distribution in Japan

In a separate statement, Valens revealed that its subsidiary Green Roads has struck a third-party distribution agreement with Tele Marche Co Ltd for the sale and distribution of Green Roads' award-winning CBD products in Japan.

Tele Marche Co, in consultation with Green Roads, developed an online store in Japan by leveraging insights and best practices from Green Roads' strong e-commerce and marketing platform in the US, which averages nearly 9,000 orders per month and boasts over 30,000 five-star product reviews.

The online store in Japan also includes various educational resources to help consumers learn more about CBD, the importance of lab testing for safety and quality, and how to choose a product that best suits their preferences.

"We are very excited to join forces with Tele Marche Co so that they can bring Japanese consumers our award-winning CBD products that many consumers in the US and beyond have come to trust for their quality, consistency, and value," said Dale Baker, who is president, US of Valens.

"We are confident that this new online store, along with its robust consumer education, will meet the growing needs of Japanese CBD consumers and will achieve success similar to that of our US e-commerce platform."

A full range of Green Roads' CBD products are now available to Japanese consumers through the online store, including tinctures, pet products, gummies, chocolate, bath bombs, and capsules. The online store in Japan will be owned and operated by Tele Marche Co under license from Green Roads.

Meanwhile, CEO Robson said the company is “incredibly proud to add Japan to the growing list of countries” in which Green Roads' products are available.

“With a population of approximately 127 million, we view Japan as a significant growth opportunity with untapped potential for leading North American CBD brands like Green Roads,” added Robson.

“With Green Roads and Valens' products now collectively available in over 12 countries, we are rapidly increasing our distribution exposure and strategically positioning our platform to service many emerging markets poised for significant growth in new global regions."

The Valens Company (TSX:VLNS, OTCQX:VLNCF) is a profitable British Columbia-based producer of cannabis products, medical and recreational, and it is scaling up operations. The company can process over 425,000 kilograms of biomass per year and its services include numerous types of proprietary extraction, analytical testing, formulation, cultivation, and research, as well as white label product development.

Valens’ products include tinctures, two-piece caps, soft gels, oral sprays, and vape pens as well as beverages, edibles, injectables, and natural health products and it has a strong pipeline of next-generation products in development.