Nextleaf Solutions Ltd (CSE:OILS) (OTCMKTS:OILFF) told investors it had been awarded its fifth US patent, one of three new ones it has received, bringing its intellectual property (IP) portfolio to eight issued patents.
The Vancouver-headquartered firm's patents all relate to the production of high-purity, cannabinoid-rich distillate, which is the key ingredient used in making THC and CBD infused products and the latest US one relates to post-extraction processing.
READ: Nextleaf Solutions and BevCanna Enterprises team up to bring cannabis-infused beverages to consumers
This stage includes the filtration and targeted removal of pigments – all of which create greater efficiencies and higher throughput rates.
Nextleaf also received positive news on two patents issued from the Canadian Intellectual Property Office as well as from Intellectual Property Australia.
"As we've seen with transactions like Canopy Growth Corp's US$330 million acquisition of Ebbu Inc. and its portfolio of pending patents, there is significant shareholder value creation through the formalization and protection of intellectual property," remarked Paul Pedersen, Nextleaf Solutions' CEO.
"The difficulties cannabis companies have faced in turning intellectual property into patents point to a broader issue in the industry, where many companies tout their intellectual property, but few have successfully obtained exclusive rights to their inventions.
"Nextleaf being granted eight patents by three international patent offices in key markets such as Canada, Australia, and the United States validates our technology and further reinforces our vision to develop disruptive intellectual property for industrial-scale extraction, purification and formulation of cannabinoids."
The company also told investors that it remained focused on expanding its IP portfolio by developing and acquiring the industry's most advanced and scalable cannabis processing solutions.
Potential to reduce costs
By applying its IP, Nextleaf has the potential to vastly reduce the cost of CBD and THC oil production, it highlighted.
In a statement, Nextleaf said it had granted BevCanna exclusive license to its intellectual property related to water-soluble cannabinoids to develop, manufacture and sell BevCanna’s infused cannabis beverage brands.
The agreement includes BevCanna’s in-house brands and white label products developed for third parties, the companies said.
Shares in Toronto advanced 5.32% to stand at C$0.50 each.
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