- Epsilon Healthcare (EPN) enters into a long-term partnership with a leading Canadian manufacturer of cannabis products, The Valens Company
- Under the agreement, Valens will have access to Epsilon’s GMP manufacturing facility in Southport Queensland
- The agreement also includes an exclusivity arrangement whereby Valens will not sell or supply any medicinal cannabis products in Australia or New Zealand other than through the Southport Facility
- Additionally, Epsilon has also entered into a share sale agreement with Cannvalate for the purchase of AlternaMed for $4.3 million
- On the market this morning, Epsilon is up 13.3 per cent and is trading at 17 cents per share
Epsilon Healthcare (EPN) has entered into a long-term partnership with a leading Canadian manufacturer of cannabis products, The Valens Company.
Valens is a leading manufacturer of cannabis products and is currently listed on the Toronto Stock Exchange.
Under the agreement, Valens will have access to Epsilon’s GMP Manufacturing Facility in Southport Queensland, the largest cannabis extraction facility in the southern hemisphere.
The parties have signed a heads of agreement with Epsilon which provides the framework for the exclusive partnership.
Additionally, the agreement also includes an exclusivity arrangement whereby Valens will not sell or supply any medicinal cannabis products in Australia or New Zealand other than through the Southport Facility.
Valens will fund all future operational and capital expenditure of the Southport
Facility during the partnership.
Valens CEO Tyler Robson is excited to work with the cannabis manufacturing facility.
“We believe this strategic partnership is an efficient use of capital towards accessing GMP quality products and accelerates our timeline to market dramatically,” he said.
AlternaMed acquisition
Epsilon has also entered into a share sale agreement with Cannvalate for the purchase of AlternaMed for $4.3 million.
AlternaMed has three Australian provisional patent applications for novel
cannabinoid therapeutic clinical assets, targeting irritable bowel syndrome, menstrual pain, and smoking cessation.
The agreement will also see two service agreements with Cannbalate. This includes giving Cannbalate the right to nominate one director to the Epsilon Board and for Cannbalate giving its advice on matters within the business.
Epsilon will issue around 28 million shares for the purchase, which is subject to shareholder approval.
On the market this morning, Epsilon was up 13.3 per cent and is trading at 17 cents per share at 11:05 am AEST.