Nextleaf Solutions Ltd. (CSE:OILS) (OTCQB:OILFF), said its wholly-owned subsidiary, Nextleaf Labs Ltd has received an amendment to its existing Cannabis Research Licence from Health Canada to conduct controlled human administration trials for sensory evaluation of cannabis at its processing facility in Metro Vancouver.
The licence permits Nextleaf Labs to conduct R&D involving the administration of cannabis to human subjects for the assessment of taste, sight, or smell, subject to conditions laid out by Health Canada, said Nextleaf, billed as the world's most innovative cannabis extractor.
READ: Nextleaf Solutions says US Patent and Trademark Office has granted it a patent for a process resulting in a solventless cannabis concentrate
"We believe this licence provides added-value to consumer-packaged goods companies looking for product development and formulation capabilities within a federally legal market," said Nextleaf CEO, Paul Pedersen in a statement. "Sensory evaluation with human subjects is essential to the development of differentiated cannabis 2.0 products."
The company plans to use this licence to conduct controlled human trials for the sensory evaluation of Rapid Emulsion Technology by OILS, the company's proprietary water-soluble emulsion technology for cannabis-infused products. The licence allows the company to conduct focus-group studies to provide its commercial partners with data based on consumer feedback around taste and overall user experience.
Under the research licence, Nextleaf Labs can begin comprehensively testing cannabis vape oils for key fluid parameters such as viscosity, and how various oil formulations interact with different vape hardware to determine the best fit for each partners' formulations. The company expects to drastically shorten design cycles and accelerate product development by validating new technologies and formulations more efficiently.
Nextleaf also noted that Nextleaf Labs has filed an amendment to its licence that upon receipt, will allow the direct sale of finished products to provincially authorized distributors and retailers nationwide. The company anticipates the issuance of the sales amendment during the first half of 2021. The amendment will enable Nextleaf Labs to offer additional value-added services to its current and future partners with a quicker and more seamless path to market.
And Nextleaf said it has awarded non-executive staff of the company 630,000 options, pursuant to the company's Stock Option Plan, exercisable at a price of $0.35 per common share, vesting at various points throughout 2021. Nextleaf has also cancelled options previously issued to consultants to the company totalling 360,000 options.
"We believe in rewarding and aligning our entire team, not just our senior team, efforts and successes. We take a lot of pride in our employees also being owners of the Company," said Nextleaf CFO, Charles Ackerman.
Nextleaf is the world's most innovative cannabis extractor, having developed the second largest portfolio of US patents among all cannabis companies. The company wholesales THC and CBD oils and provides extraction services through its wholly-owned subsidiary Nextleaf Labs Ltd.
The group's automated closed-loop extraction plant in Metro Vancouver has a design capacity to process 600 kg per day of dried cannabis biomass into distilled oils. Nextleaf Labs holds Health Canada licenses for standard processing and research under the Cannabis Act, allowing for a number of licenced activities including sensory evaluation of cannabis via human testing.
The company owns a portfolio of 12 issued US patents, and over 60 issued patents globally, for the extraction, purification, and delivery of cannabinoids.
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