In a statement, the company said the patented technology targets the removal of fats and waxes from crude cannabis oil extracts in far less time, achieving more efficient throughput rates, resulting in a highly desirable, impurity-free, and refined distillate.
Nextleaf said it can now can apply this technology to a variety of primary extraction methods, such as Co2 or ethanol.
READ: Nextleaf ties the bow on a pair of federally-funded cannabis extraction R&D projects in Canada
"Since 2017, we've been hyper-focused on acquiring, developing, and protecting IP around the underlying technology that goes into transforming plant into product," said CEO Paul Pedersen.
"Our technology is based around what we believe to be the most efficient method to go from dried cannabis biomass into a high-purity THC or CBD rich distillate, in an efficient and truly scalable way. This being our fourth issued patent, further strengthens Nextleaf's intellectual property portfolio pertaining to industrial-scale cannabis extraction and purification," he added.
The infused-product industry is projected to be a $2.7 billion market annually in Canada, driven largely by shifting consumer preferences from dried flower to edibles, vapes and concentrates.
Nextleaf said it believes the technology behind cannabis product formulation and manufacturing efficiently at scale will be one of the key differentiators in the industry.
"One of the biggest issues with infused products relates to taste. With crude extracts and less refined oils, the consumer experience is affected by inferior taste and smell because of the chlorophyll, fats, and waxes," Pedersen noted.
"We believe the success of every producer in the cannabis industry will ultimately come down to the quality of their product, and the cost per milligram to create that product. By having a technology advantage protected by defendable intellectual property, OILS will be able to drive low-cost production and maintain a competitive advantage and leadership position."
Vancouver-based Nextleaf said it is focused on obtaining broad, worldwide patent coverage for its innovative methodologies and equipment, with an emphasis on the US and Canada. The company plans to begin commercializing its intellectual property in jurisdictions where cannabis is federally legal.
The company's stock closed flat at C$0.58 in Canada and declined 0.61% to US$0.43 on the OTC Markets on Tuesday.
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