“We are pleased to work with Valens as this partnership will allow Experion to expand production to facilitate broader consumer access to our award-winning Citizen Stash products…partnering with an industry leader such as Valens allows us to immediately multiply our capacity and positions us to quickly develop next-generation product lines. We believe this relationship demonstrates to the market that we are laser focused on driving revenue by expanding our capacity to deliver premium cannabis products across Canada,” stated Jarrett Malnarich, chief executive officer of Experion Holdings
In accordance to the agreement, Valens will provide end-to-end pre-roll manufacturing services. In doing so, Valens will be supporting Experion’s growth and product distribution of the Company’s premium cannabis offerings, namely Citizen Stash products. It is worth noting that this is Valens’ first custom manufacturing agreement since receiving its Health Canada amendment on February 12, 2021. The amendment permits Valens to sell dried cannabis derivative products which is expected to increase the company’s total addressable market.
“We are excited to kick off our preroll manufacturing services with the commencement of our agreement with Experion for their Citizen Stash premium prerolls, which will expedite the entry of Valens-manufactured dried cannabis products into the Canadian market…Citizen Stash is synonymous with best-in-class products, and we are proud to be chosen as a partner who can deliver on customized and premium-quality products for the brand,” said Tyler Robson, chief executive officer, co-founder and chair of The Valens Company.
The terms of the agreement support a minimum two-year partnership with monthly minimum order quantities. However, there are continued discussions between both companies regarding the expansion of the current agreement. In doing so, the expanded agreement would include additional product development and custom manufacturing services for next-generation products such as gummies.
Having entered into a manufacturing agreement with Valens, Experion’s Citizen Stash line is likely to find increased popularity. Prior to the agreement, the Company’s Citizen Stash brand was recognized as one of the top 25 suppliers in Ontario according to the Ontario Cannabis Store (OCS). Additionally, Experion just recently increased their total amount of SKUs available in the province by 44%. With this in mind, Experion’s agreement with Valens will be crucial in enabling the Company to meet consumer demands.
Experion’s stock price opened at $0.37 and is holding at this price.