I read it as Valens are paying for the running and further development of Southport, and we just pay a fee on products such that we are left with our royalty. Short term it cuts our costs and allows ramp up, which is something management were not able to do themselves. (It also let's the company stay afloat a bit longer and keep paying management salaries).
Not sure why we are giving away more of the company to acquire intellectual property given the track record trashing the value of past intellectual property (Pegasus ag, Agrifibre strains etc.).
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- Ann: Epsilon Enters Exclusive Partnership with The Valens Company
Ann: Epsilon Enters Exclusive Partnership with The Valens Company, page-13
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