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Valens GroWorks confirms greenhouse expansion plans in C$75mln joint venture development

Last updated: 13:48 20 Jun 2018 BST, First published: 08:48 20 Jun 2018 BST

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Pictured: A greenhouse where cannabis is grown

Cannabis-focused group Valens GroWorks Corporation (CSE: VGW) has finalised its expansion plans for its greenhouse in the city of Armstrong, British Columbia, which it intends to be 'world-class'.

Subsidiary Valens Farms' is currently building a state-of-the-art, purpose-built 400,000 sq ft cannabis cultivation and production facility.

It is a C$75mln  joint venture project (50/50 between Kosha and Valens), with phase 1, a buildout to 400,000 sq ft, but with a permit for up to 800,000 sq ft.

Initial crop planting at the facility is expected in the fourth quarter this year, with Valens and Kosha to split profits on a 50:50 basis following cost recovery by Kosha.

Valens Farms is expecting phase 1 production of up to 56,000 kg per year of premium monocrop cannabis, mainly for extraction.

Monocropping minimizes the grow time, allows for greater crop turnover, and is expected to enhance profit margins, Valens said.

Meanwhile, subsidiary Valens Agritech will extract cannabis produced at Valens Farms for further processing into higher-margin Valens-branded products for medical, as well as the expected recreational cannabis markets in Canada and internationally, the company revealed.

"I am extremely excited to confirm the following highlights and key participants brought together to complete the Valens Farms facility." said Tyler Robson, chief executive at Valens.

"The intent is to build a facility nothing short of world-class as Valens continues to evolve into a vertically-integrated provider of Valens-branded cannabis consumer products with the ability to quality control every batch of input."

Key contributors to the greenhouse build-out include Nexus Greenhouse Systems -  an industry leader in greenhouse construction.

DIRTT Environmental Solutions is designing and constructing the headhouse, while Argus Controls is supplying an advanced environmental control system.

Dramm Corp is providing fully automated irrigation systems with the ability to precisely fertigate our plants multiple times a day, while PIPP Horticulture has been contracted to provide solutions that maximize the grow space.

Hove's Canna Gutter Bench is providing additional solutions to help maximize grow space and work efficiency through the aid of rolling benches, taking usable grow space from 60% to as much as 90% while significantly aiding workers' flow and ergonomics.

Last week, Valens bolstered its business development - receiving an ISO 17025 accreditation for cannabis testing.

It was the first dealer's license using cannabis as it's matrix in Canada to achieve this accreditation.

The scope of the accreditation includes methods for cannabinoids, pesticides, toxic metals, terpenes and residual solvents.

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