Epsilon Healthcare Limited provided an update on its exclusive partnership with The Valens Company as initially announced on 9 September 2021. Epsilon recently announced that it had entered into a long-term exclusive partnership with The Valens Company for access to Epsilon's Southport Manufacturing Facility to further Valens' international expansion to GMP markets in Asia-Pacific, Latin America, Europe and the UK. Through a partnership with Epsilon, Valens will access Epsilon's GMP manufacturing capability at the Southport Facility, the largest cannabis extraction facility in the Southern Hemisphere with TGA and EU GMP capability and will offer Valens the capability to deliver GMP grade products to newmarkets.

Valens' Binding Heads of Agreement with Epsilon provides framework for the exclusive partnership, including an operational consultancy in which Valens allows Epsilon a license to use Valens' intellectual property in operating the Southport Facility, and will provide personnel and support to the facility. In addition, Valens will fund all future operational and capital expenditure of the Southport Facility for the duration of the partnership on a reimbursement basis in return for having access to up to 85% of the planned manufacturing capacity of the Southport Facility on a prioritised first right of refusal basis. The Binding Heads of Agreement contemplated the formalisation of the exclusive partnership through the execution of further definitive agreements on or before 30 November 2021.