logo-loader
viewNEXTLEAF SOLUTIONS Ltd.

Nextleaf Solutions acquiree Nextleaf Labs inks cannabis extraction deal with Ontario producer

The client will provide up to 15 metric tons of cannabis biomass, which Nextleaf Labs will process into oils

Cannabis flower and cannabis oils in jars and bottles
Nextleaf Solutions owns a portfolio of 15 issued patents and over 60 pending patents for the extraction, purification, and formulation of cannabinoids

Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) announced Thursday that its pending acquisition Nextleaf Labs has signed a cannabis extraction agreement with a well-known Ontario producer. 

Under the terms of the deal, the client, which operates a 10-acre cannabis cultivation greenhouse will provide cannabis biomass, which Nextleaf Labs will process into refined and distilled THC and CBD oils using the company’s proprietary extraction technology. 

Nextleaf Labs will supply the oils to the wholesale market, and the net proceeds will be shared between the two parties, which Nextleaf Solutions believes could generate as much as C$16 million in gross revenue for the company.

READ: Nextleaf Solutions unveils employee equity participation plan amid coronavirus pandemic

The agreement will expire after either one year or whenever 15 metric tons of biomass has been delivered.

"Our stakeholders have been eagerly awaiting the commercialization of Nextleaf Solutions' proprietary extraction technology,” Nextleaf Solutions CFO Charles Ackerman said in a statement. “We are pleased Nextleaf Labs' first large cannabis extraction agreement is with such a strong cultivator, who has been an early industry leader producing exceptional quality product at a large scale.”

Nextleaf said it believes there’s a significant opportunity to monetize lower-grade cannabis materials into high-purity distilled oil. By investing in technology, Nextleaf is able to deliver efficient, scalable, low-cost solutions to business-to-business partners and customers, the company said.

"We believe we are delivering on the overall mission of building a fundamentally-sound company that operates one of the most efficient, technology-driven cannabis oil refineries in Canada, and we look forward to taking the business into the next phase of growth," Ackerman added.

Nextleaf Solutions, based in Vancouver, owns a portfolio of 15 issued patents and over 60 pending patents for the extraction, purification, and formulation of cannabinoids.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: NEXTLEAF SOLUTIONS Ltd.

Price: 0.33 CAD

CSE:OILS
Market: CSE
Market Cap: $35.68 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of NEXTLEAF SOLUTIONS Ltd. named herein, including the promotion by the Company of NEXTLEAF SOLUTIONS Ltd. in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Nextleaf Closes First Tranche of Non-Brokered Financing,...

NextLeaf Solutions (CSE: OILS) CEO Paul Pedersen checked in with Proactive Vancouver to let Steve Darling know they have closed the first tranche of financing and in fact, it was oversubscribed. Pedersen told Proactive they had really loyal shareholders being a large part of that raise....

3 days, 9 hours ago

2 min read