Valens GroWorks (CSE: VGW) (OTC: VGWCF) has agreed to provide cannabis and hemp extraction services to The Green Organic Dutchman Holdings (TSX: TGOD) (US: TGODF).

TGOD is engaging Valens in cannabis and hemp extraction.

Under the terms of a two-year agreement, TGOD will supply Valens with an annual minimum of 30,000 kg of cannabis and hemp biomass in the first year, increasing to 50,000kg in year two.

As part of the deal, Valens will process into resins and distillates using its extraction processing methods.

“The ability to partner with skilled and specialized extraction operators such as Valens will add significant bench strength to TGOD’s already robust extraction capabilities in Canada, Poland and Jamaica,” TGOD CEO Brian Athaide commented on the agreement.

What’s Next

TGOD plans to use the concentrated cannabinoid resins and distillates to produce oils, sprays, and capsules as well as oils for vaporization and future edible, beverage and topical products.

The first shipment from TGOD is expected to arrive and begin processing in the second quarter of this year.

Valens says that it has been working with TGOD to expedite the process to organic certification for its organic processing methodologies. Upon certification, the company will offer a one-year exclusivity to TGOD for certified-organic extraction processing services.