Nextleaf Solutions takes aim at infused beverages and edibles with patented cannabis extraction technology


The group is developing technology for distilling THC and CBD oils used to formulate Cannabis 2.0 products at scale within a highly regulated environment

cannabis extraction



Price: 0.23 CAD

Market Cap: $28.64 m
  • Patented cannabis extraction technology, which is both scalable and repeatable
  • Sees ample supply of low-quality cannabis and hemp biomass and a lack of extraction and processing capacity
  • Owns 12 US patents and 70 patents globally for the extraction, purification, and delivery of cannabinoids

What Nextleaf Solutions does: 

Nextleaf Solutions Ltd (CSE:OILS) (OTCMKTS:OILFF) is a cannabis-extraction-technology company that has a patented process for the commercial-scale production of high-quality cannabinoid distillate, the precursor to every cannabis-infused product. 

In short, the British Columbia-based company is bridging the gap from soil to oil, a reflection of its technology, which allows for low-quality, dried cannabis biomass to be processed into a high-purity distilled oil. A front-runner in the extraction space, Nextleaf is also getting into infused beverages and edibles.

The fact is that there is an ample supply of low-quality cannabis and hemp biomass - but there is a lack of extraction and processing capacity in the industry. Nextleaf is developing intellectual property around converting the cannabis plant into infused products through a scalable, repeatable process.

Nextleaf focuses on a premium distillate and believes the secret to producing standardized and impurity-free cannabis extracts is in the purification and refinement steps, which go above and beyond the typical crude extraction. Its highly concentrated THC or CBD distillate is odorless, tasteless, and standardized for potency. 

The company provides toll processing for licensed cultivators and wholesale of distilled THC and CBD to qualified Canadian and international B2B partners and manufacturers of edibles, beverages, and other infused products. The company delivers its proprietary technology through its Health Canada Licensed Standard Processing facility in greater Vancouver.

Nextleaf is the first-publicly traded entity to be issued multiple US patents for industrial-scale extraction and distillation of cannabinoids. The company also has more patents pending in Europe, Jamaica, and Mexico for ethanol and butane hash oil (BHO) extraction, distillation and formulation of cannabinoids.

How is it doing: 

It is shaping up to be another active year for Nextleaf in 2021, as the company announced most recently that the Israeli Patent Office has granted the company a patent for its foundational process for producing low-cost cannabis distillate, the company's fifth issued extraction patent in Israel.  

With the medical cannabis market in Israel continuing to grow along with the tailwind of legalization, Nextleaf views Israel as a key jurisdiction for cannabinoid IP rights. In December 2020, Israel signed a regulatory amendment permitting the use of CBD in cosmetics and food products.

The company also revealed that its Nextleaf Labs subsidiary has entered into a hemp processing agreement with Green Light Solutions (GLS), a British Columbia CBD company that develops products through its own subsidiary, JOE’S Hemp Shack Inc. Under the terms of the deal, JOE’S will provide hemp biomass that Nextleaf will process into CBD refined oil or distillate at its processing facility.

As well, Nextleaf reported that it has been granted a patent for the acetylation of cannabinoids (CBD), as well as the subsequent refinement of CBD-O-Acetate using a proprietary extraction and distillation technique, from the Canadian intellectual property office.

Nextleaf noted that it now owns 12 US patents and 70 patents globally for the extraction, purification, and delivery of cannabinoids, which it said represents the second-largest patent portfolio among all cannabis companies.

And earlier this year, the company announced that the United States Patent and Trademark Office had granted it a patent for a process resulting in a solventless cannabis concentrate. Nextleaf's latest US patent covers a process whereby trichomes are made brittle from exposure to low temperatures and separated from plant material during agitation and through a series of filtration. The result is a proprietary full melt bubble hash concentrate, a product category that makes up approximately 10% of the cannabis market in the United States.

In late 2020, Nextleaf announced that it had entered into a cannabis extraction services agreement with a licensed producer that operates production and distribution facilities across Canada. Under the services agreement the client will provide cannabis biomass, based on a minimum of 1,000 kilograms of dried marijuana per service order, to be processed into THC distillate at Nextleaf's processing facility. 

A few weeks earlier, Nextleaf had struck an extraction deal with a premium white-label flower producer in Canada and was awarded a patent in Mexico, which is set to become the largest legal cannabis market in the world, based on population. The initial term of the agreement with the client will end after 12 months, or when 1,000 kilograms of marijuana have been processed, whichever comes sooner.

In 2020, the company took its first meaningful steps through the Commercial Partners Program (CPP) into the adult-use market with the launch of vape cartridges powered by its high-purity distillate. The items were made available at cannabis retailers in Saskatchewan, with more provinces to be announced in the coming months. 

Inflection points:

  • Global IP expansion and licensing opportunities 
  • Expand further into provincial adult-use markets with vape cartridges 
  • Offer pesticide contamination remediation process in 2021 

What the boss says: 

Nextleaf CEO Paul Pedersen has said: "Our strategy from day one was to be the absolute best at developing disruptive extraction technology and focus as a business, not worrying about growing or developing brands or retail, but to just focus on the underlying technology that goes from plant into product and being able to deploy that in a highly scalable way." 

Contact Sean at sean@proactiveinvestors.com

Add related topics to MyProactive

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


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 named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...


Buds & Duds: Cannabis stocks level out Thursday; Next Green Wave shares pop...

Buds of the day are Next Green Wave (CSE:NGW) (OTCMKTS: NXGWF), Nextleaf Solutions Ltd (CSE:OILS).   Duds are CannTrust Holdings Inc (OTCMKTS:CNTTF) (TSE:TRST). 

on 28/3/19

5 min read