VIDEO: Valens Groworks Corp (CNSX:VGW) Finely-Tuned Cannabis Extracts
Valens Groworks Corp (CNSX:VGW) (OTCMKTS:MYMSF) (FRA:7LV) Extraction Production Manager Quinn Shiskin discusses how Valens has developed their extracts to provide specific effects that end-user patients want. With the dealer’s license Valens GroWorks has, they are in a position to lead the way once Canada allows extractions for the recreational consumer. Quinn also shares that they have entered a joint-venture with SpeakEasy Cannabis Club (CNSX:EASY) (OTCMKTS:SPBBF) (FRA:29H) and provides a significant amount of extraction services for Canopy Growth Corp (TSE:WEED (NYSE:CGC) (FRA:11L1).
James West: Hey! Welcome back to Midas Letter Live. My guest this segment is Quinn Shiskin. He’s the extraction production manager for Valens Groworks. Valens Groworks Corp, let’s try to say it correctly, trading on the CSE under the symbol VGW.
Quinn, thanks for joining me today.
Quinn Shiskin: Thanks for having me today James.
James West: Quinn I’m assuming as the extraction production manager you must be quite the expert in extracts and production of extracts.
James West: Sure. Now every extractor under the sun lays claim to the mantel of best quality extract and from my experience as an extract consumer, quality means different things to different people. To a medical user who’s focused on CBD ingestion using extracts as an ingredient that they’re going to drink, it’s one thing. For somebody who’s looking for an anxiety defeating high or an appetite lift is looking for more THC, it means another thing. When you say “best quality” extract what do you mean from the standpoint of Valens Grow?
Quinn Shiskin: It’s really important about our feedstock that we’re putting into our extraction process. It’s a really specific what we do for strain development to extracts. You have to put the biochemical contents of the cannabis into effect. Once you do that you can really develop strain specific and oil specific for different ailments and medical benefits or mood elevating or mood, I guess de-elevating if you want to go to sleep. We’re really proud of ourselves for having different developed ratios of cannabis oils and to hit all the different ailments and medical benefits.
James West: Okay, so from a producer’s perspective quality means giving the people what they need, I guess.
Quinn Shiskin: That’s right. Yeah, exactly.
James West: To what extent is the entourage effect important in the ultimate extract ingredient? I’ve seen lots of stuff suggesting that CBD without THCs and vice versa are not going to get the uptake in endocannabinoid system if they’re isolated from each other and perhaps that’s not necessarily the focus of somebody who’s focused on making the extracts but is that an important component of what you consider in creating of the finished product?
Quinn Shiskin: Definitely, yeah. There’s lots of studies coming out on how the THC are helping out the CBD and vice versa that are really important in the medical benefit as well. Lots of new studies on that about having the three combinations together to hit all the different highs or whatever the medical benefits you need.
James West: Sure. What is the Valens Grow sort of approach towards recreational legalization in the context of extracts?
Quinn Shiskin: That’s going to be great for us. We’re exploring international markets right now. When legalization happens we’ll be able to keep our extracts in house and be able to serve Canada and try to be a leader in the sector in house here.
James West: What is it about your systems that differentiate you from other extractors?
Quinn Shiskin: Right now we’re a high throughput extraction CO2 extractions but we’re going to be developing more into ethanol and cold-wash ethanol extractions. The reason for that being we want to increase our throughput by the end of the year, probably a 2000 lbs. a shift. Doing extracts that way in the ethanol we really increase our throughput, our daily throughput.
As the extraction process develops and the Canadian market matures, we’ll be able to hit all different segments especially as the hemp regulations change we’ll be able to extract high quantities of CBD as well doing the ethanol extractions. We just want to be a leader in the throughput. That’s where we’re going to differentiate.
James West: Okay, so is it anticipated that the bulk of the consumption of the extract products that you’re creating is it consumed as an ingredient in another, like do people want to dilute it in foods or something and consume it that way?
Quinn Shiskin: Yeah, as of right now yeah. We’re very focused on products we can make in Canada but as the market matures we’ll get more into the smoking vaporizer markets. I follow the trends down in California and Colorado and these places and the extract market is 72% vape cartilages. As we develop in Canada I believe we’ll be a leader in that area.
With our dealers license we’re going to explore the different types of extractions, getting into fraction distillations and isolations like that. We can start developing these now in-house and then when the market comes we’ll be ready to go with everything.
James West: Right. Wow, awesome! How many different sort of varieties and strains are you working with now?
Quinn Shiskin: Right now we have five different strains we’re developing but we have a bunch of new ones coming in as we speak. We’re going to have probably around 10 by Q3.
James West: Sure. So you guys only started oil production in, I guess it was March this year?
Quinn Shiskin: Yeah.
James West: And you increased capacity by 600% by the end of that month? Is that sort of rate of capacity increase going to be normal in the Valens Grow environment?
Quinn Shiskin: Definitely! We’re looking to spend our throughput every day, so there’s new developments. It seems like the sector is changing every week right now. New stuff coming out and people getting new products, so we’re definitely going after high throughput and going to this cold-ethanol extractions is going to get us there for sure.
James West: Is that right? You guys also have a growing operation to produce cannabis coming online soon.
Quinn Shiskin: That’s right.
James West: For now where do you source all of your cannabis from?
Quinn Shiskin: We go through strict vendor verifications all through different LPs in Canada. We want to go for GMP quality extracts so we have to do a very strict verifications on where we get our feedstock. We’ve been visiting a lot of different LPs and now we have that joint venture or partnership with Speakeasy. Those guys are after producing very high quality flower out of their place so we’re excited about that as well.
James West: Okay. You’re going to take output from a whole bunch of different LPs going forward. Does that leave you sort of reliant on LPs or does the existence of your own growing operation give you a little bit of cushion from that?
Quinn Shiskin: It cushions and then Canopy Growth is also with that venture we have with them as well. They give us a lot of feedstock from them so they keep us very, very busy. Once our greenhouse comes online we’ll have endless feedstock for operations.
James West: Wow. So Canopy is currently your biggest provider of feedstock?
Quinn Shiskin: Yeah, definitely.
James West: That’s great. What is the sort of branding outlook for you guys? Are you going to brand your own products using unique different consumer facing brands or are you going to partner with somebody else and supply as a white label solution for them?
Quinn Shiskin: We’re going to have both options actually. We’re going to do toll processing and white label option and then we’ll have our own branding. It’s very limited to what we can brand with the regulations in Canada but we’ll have multiple brands of ourselves and then the white label as well.
James West: Fantastic. Do you anticipate that CBD or THC is going to be more popular? What is currently the most sought after?
Quinn Shiskin: I think it’s more THC right now, but once we can actually produce our hemp in house out of Canada then I think CBD is going to take off with natural health products and also in the recreational market as well. There’s so many medical benefits that people need to get on it and explore.
James West: There’s a lot of companies sort of angling and positioning to grow hemp. In other words THC below 0.02% in an effort to create CBD extracts at a super ultra-low cost. They’re even talking about growing it outside in the open, no greenhouses or anything, from a qualitative standpoint as an extraction expert, is that viable? Are there limitations to what the end product can be using that type of feedstock?
Q: No I don’t think so. I think that outdoor agriculture has been around a long time. If they follow the GACP which is the Great Agricultural Practice, it’s no problem for the feedstock. There’s so many refinements in the isolation process, you’re refining the cannabinoids so much that it’s pretty much we can do pesticide remediation or anything that heavy metals, we can take out. If there’s any problem we can have solutions for.
James West: Alright. That’s great. We’re going to leave it there for now Quinn. Thanks for the update and we’ll come back to you soon.
Quinn Shiskin: Great. Thanks for having me.
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