Valens GroWorks Corp (CSE:VGW) (OTC:VGWCF) said Tuesday it has signed a two-year agreement to provide cannabis extraction to Tantalus Labs

The cannabis extraction company will process marijuana biomass from Tantalus into resins and distillates. It expects to begin processing the first shipment in the third quarter of 2019.

Shares increased 1.4% to C$4.31 in Toronto and 4.9% to US$3.19 on OTC markets. 

Tantalus Labs is a British Columbia cannabis producer focused on sungrown cultivation techniques.

"We are honored to be recognized by Tantalus, one of the industry's most respected players currently providing exceptional flower products to both medical and recreational users here in Canada," Valens CEO Tyler Robson said. "We look forward to working closely with the team at Tantalus as they broaden their product portfolio under the anticipated new regulations this fall."

Taps Fallows as president

The company also announced Monday that Jeffrey Fallows will take over as president of Valens starting in June. His primary focus will be growing Valens' presence both in Canada and internationally. 

Fallows was previously a managing director at investment firm AltaCorp Capital Inc, and he brings 17 years of financial experience. 

"Jeff has a proven ability to build relationships with clients and an extensive professional network and understanding of the cannabis sector," Robson said. "We are excited to have Jeff join the Valens executive team to help lead the Company through its next phase of domestic and international growth."

Fallows will have incentice-based stock options to purchase as many as 750,000 shares at a price of $4.21 per share.