Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) announced Thursday it has entered into a cannabis extraction services agreement with a licensed producer that operates production and distribution facilities across Canada.
In addition, the company said it received its 11th US patent, this time for technology involving ultrasonic cannabinoid extraction using a non-flammable co-solvent.
Under the services agreement, the client will provide cannabis biomass to be processed into THC distillate at Nextleaf's processing facility.
READ: Nextleaf Solutions unveils new cannabis extraction deal and receives production patent in Mexico
Nextleaf also noted that the pricing and value of the deal are based upon the volume of distillate produced by Nextleaf Labs from the client's cannabis biomass. The extraction services are paid in cash and are based on a minimum of 1,000 kilograms of dried marijuana per service order.
"We are thrilled to add another strong LP to our Commercial Partners Program,” said Nextleaf CFO Charles Ackerman in a statement. “OILS will supply high purity cannabis distillate to help support our partner's cannabis 2.0 strategy nationally.”
As for the new patent, Nextleaf said the process describes a method of extracting cannabinoids from cannabis biomass in a non-flammable and inexpensive co-solvent system using a flow-through ultrasonic extraction system.
"This technology has the potential to differentiate from the established extraction methods through the use of an innovative continuously-fed cannabinoid extraction system," said David Novitski, co-author of the patent. "The ability to continuously extract THC from biomass is a gamechanger in the realm of extraction."
Nextleaf added that the new patent is the latest example of its commitment toward the development of new technologies that result in high-quality and low-cost distillate products.
Shares and options issued
In other company news, Nextleaf said it has issued 418,823 common shares at $0.17 each, representing an aggregate value of $71,200, to two non-executive employees and to one consultant as compensation for services provided.
It has also issued 911,765 common shares at $0.17 each, representing an aggregate value of $155,000, to two consultants as settlement for existing debts. The shares are subject to a four-month period in accordance with applicable securities laws.
The company also issued 250,000 stock options to the consultants, each option exercisable for five years at an exercise price of $0.25 and vesting immediately.
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