Mr. Tyler Robson of Valens reports

VALENS SIGNS MULTI-YEAR CANNABIS EXTRACTION AGREEMENT WITH GTEC HOLDINGS

Valens Groworks Corp. has entered into a multiyear cannabis extraction services agreement with GTEC Holdings Ltd.

Under the agreement, GTEC will ship bulk quantities of dried cannabis to Valens for an initial four-year term. The company will receive and process the cannabis on a fee-for-service basis into crude, distillate or other cannabis oil derivatives as required by GTEC before bulk shipping the desired product back to GTEC for final processing and sale.

"We are excited to announce another material agreement to support a great Canadian and local Okanagan industry peer in bringing high-quality, cannabis derivatives to the market. This agreement shows the start of a shift where companies are beginning to understand the demand and supply shortage for oils and Valens's strategic position in that shift. We have been working diligently to ramp up our processing capacity to support new agreements such as this," says Tyler Robson, chief executive officer of Valens.

"In mature cannabis markets, derivative products such as vape pens, edibles and infused beverages account for over half of all products sold at the consumer level. Over the coming years, we anticipate that the Canadian market will evolve to reflect a similar product mix," said Norton Singhavon, chairman and chief executive officer of GTEC Holdings. "This partnership provides GTEC with the ability to utilize Valens's IP, technology and expertise to immediately develop value added products. We are excited to commence this partnership, given our respective core competencies and the geographic proximity to our facilities, we view this as a well-suited and synergistic relationship."

About GTEC Holdings Ltd.

GTEC was founded in 2017 to capitalize on opportunities in the nascent and rapidly growing legal cannabis industry. GTEC is focused on growing premium quality craft cannabis in purpose-built indoor facilities. GTEC currently holds a 100-per-cent interest in GreenTec Bio-Pharmaceuticals Corp., Alberta Craft Cannabis Inc., Grey Bruce Farms Inc., Tumbleweed Farms Corp., Zenalytic Laboratories Ltd. and Spectre Labs Inc.

About Valens Groworks Corp.

Valens Groworks is a research-driven, vertically integrated provider of Canadian cannabis company focused on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification, as well as associated quality testing with three wholly owned subsidiaries located in and around Kelowna, B.C. Subsidiary Valens Agritech (VAL) holds a licence to cultivate cannabis and produce cannabis oil under the Cannabis Act, as well as a licence to conduct analytical testing for the cannabis industry. VAL also has a supply agreement with Canopy Growth under their extensive CraftGrow distribution network. Subsidiary Valens Labs is a Health Canada licensed ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant Based Science.

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