VIDEO: Valens Groworks Corp (CNSX:VGW) Licensed Dealer that Extracts Cannabinoids
Valens Groworks Corp (CNSX:VGW) (OTCMKTS:MYMSF) (9FRA:7LV) CEO Tyler Robson talks the difference between licensed dealers versus licensed producers in the cannabis space. Valens Groworks has the ability to extract 72,000kg of dried plant material per month and growing. Tyler talks about how the company is getting ready for their licensed producer status application and their positioning for the adult use recreational market as well.
James West: Hey, welcome back to Midas Letter Live. Today, we’re going to do something different; we’ve going to talk to Tyler Robson – he’s the CEO of Valens Gro – from their operations location in Kelowna, BC, via Skype. If you like what you see, you can ask questions in the window of either Facebook or YouTube, and feel free to ask for other topics and themes going forward, but right now, Tyler, thanks for joining us today.
Tyler Robson: Absolutely. Thanks for having me.
James West: Tyler, we’re looking at the edge of a new era in Canada. We’re going to see the legalization of cannabis for recreational purposes, and that is going to have the effect of changing the rules for some of the ACMPR licensed producers. So in a nutshell, can you give me an overview of what is going to change with the advent of Bill C-45, that is going to differentiate licensed producers from licensed dealers?
Tyler Robson: Yeah, so it’s really hard to pinpoint exactly what’s going to change, because there are many changes coming. But right now, a dealer’s license actually answers to the narcotic control regulations, where an LP answers to the ACMPR and the Office of Medical Cannabis. So on enactment of the Cannabis Act, all those entities are merging, so there’s actually going to be a new set of rules for everybody to follow.
James West: Does that mean that licensed producers who are licensed producers now, will automatically remain licensed producers, and people with dealers’ license now, or LDs, are going to remain licensed dealers? Or will there be a change in requirements or qualifying sort of circumstances?
Tyler Robson: There are going to be some changes and some requirements, and some kind of crossover in between the two. So it does look like LPs will be grandfathered into the new regime as well; same with licensed dealers. But there are going to be different requirements. So even when you look at some of the requirements, you get into the standard cultivation, microcultivation and processing, standard processing, microprocessing. It’s really unanswered as of right this second where all the dust will settle, but it looks like everybody will be grandfathered into the new regime.
James West: Uh-huh. Okay, so Valens Gro is a licensed dealer under the Narcotics Control Act, or just an extractor under Narcotics Control, but you also have an ACMPR cultivation license and sales license, is that right?
Tyler Robson: No, that’s actually not right; we don’t have our ACMPR cultivation license or sales license yet. We’re working on our application to become a licensed producer, but currently we’re operating everything you see behind us, under the Narcotic Control Regulations as a licensed dealer.
James West: So what is it we’re looking at behind you?
Tyler Robson: So right now, you’re looking at one of our newest extraction machines; it’s called the Vitalus 290. So it’s actually a double-chamber extraction vessel.
James West: Okay, so how much extract can you make?
Tyler Robson: A lot. Pretty subjective at the end of the day, because if you put 20 percent cannabinoid profile in, you’re going to get 20 percent retention out, so it really depends on the inputs you’re putting in. But right now, this is the second-largest CO2 extraction machine on the market today.
James West: I see. And so right now, where are you sourcing your input for this?
Tyler Robson: We’re currently buying from LPs right now. So there’s a few LPs we have a supply agreement with, where we’re actually getting their material and extracting it right now, and making refined product.
James West: Okay, so when you’re an LP and an extractor, that’s going to probably open up a lot more revenue opportunities for the company, I would think?
Tyler Robson: Yeah, absolutely. So as we sit right now, the only thing we’re currently waiting on is our licensed producer status, and it’s a game-changer for us as soon as that does come. That opens up a whole lot of avenues for us, yeah.
James West: How many other medical marijuana participants are able to extract cannabis from material provided by other LPs?
Tyler Robson: Most LPs, if they have their oil license, they’d be able to do extraction, but that’s where the dealer’s license comes into play. So dealer’s license has a few different opportunities, really. So LPs are stuck to cannabis, which is essentially flower and oil; LDs are allowed to do a lot more than that. So we’re actually allowed to make vaporizer pens and do other stuff under our license right now.
James West: I see. And how much oil could you produce every year with the whole set up that you’ve got, if it was running 24/7?
Tyler Robson: To be honest, I can’t even get that number together right now. Right now, we have the ability to extract about 72,000 [sic] kilograms of dried plant material; we’re going to be raising that number to about 10,000 in the near future, per month.
James West: Wow. So you’ve got a lot of capacity there for future growth?
Tyler Robson: Definitely, yeah.
James West: Okay, great! Well, that’s interesting, Tyler. We’ll come back to you again soon. Thank you so much for your time today.
Tyler Robson: Perfect. Thanks for stopping by, guys.
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