Nextleaf Solutions wins 50th patent as it expands into adult-use cannabis market and garners more bulk-sales deals

The company said US patent concerns the formulation of a solventless extract

NEXTLEAF SOLUTIONS Ltd. - Nextleaf Solutions Ltd wins its 50th patent as it expands into the adult-use cannabis market and garners more bulk-sales deals
Nextleaf also has entered into a bulk cannabis distillate supply agreement with a BC-based licensed processor and one of Canada's top selling cannabis brands

Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) announced Monday that it has won its 50th patent as it expands into the adult-use market and garners more bulk-sales deals.  

In a statement, the company said the US patent concerns the formulation of a solventless extract. It has been issued patents as well in Canada, Israel, Australia, New Zealand, Colombia, South Africa, and across the EU.

"I'm extremely proud of our team for receiving its 50th issued patent, which represents the second-largest patent portfolio of any cannabis company," said Paul Pedersen, CEO of Nextleaf Solutions.

READ: Nextleaf Solutions completes successful scale trials for its rapid emulsion technology

The company said vape cartridges powered by its high-purity distillate are available at cannabis retailers in the Saskatchewan adult-use market, with more provinces to be announced in the coming months. 

The launch of vape cartridges into provincial retail through the company's Commercial Partners Program represents an important milestone for OILS in the commercialization of its intellectual property (IP) portfolio.

"This represents the first step in OILS entering the adult-use market in a meaningful way,” said Pedersen. “We look forward to a sequence of product launches in the months ahead, as Nextleaf supports the launch of innovative cannabis products through its Commercial Partners Program.”

Bulk sales

In addition, through its wholly owned subsidiary Nextleaf Labs Ltd, the company said it has completed the bulk sale of premium tetrahydrocannabinol (THC) distillate to a British Columbia-based licensed cannabis processor focused on the manufacturing and distribution of branded cannabis consumer products through provincial retail.

Nextleaf also has entered into a bulk cannabis distillate supply agreement with a BC-based licensed processor and one of Canada's top-selling cannabis brands. Nextleaf will supply over 100 kilograms (kgs) of cannabidiol (CBD) distillate to the client for the purposes of manufacturing white label CBD-based products.

"We see this as the beginning of a long-term relationship with a cannabis brand that does some of the highest sales volume in Canada," said Nextleaf CFO Charles Ackerman.

Nextleaf entered into a bulk cannabis biomass supply agreement whereby the client supplies over 2,000 kgs of THC and CBD cannabis biomass for Nextleaf Labs to process into distilled THC and CBD oils using Nextleaf's patented extraction platform.

Since commencing commercial oil production earlier this year, Nextleaf said it has contracted the supply of over 27,000 kgs of dried cannabis biomass from licensed cultivators through the OILS Commercial Partners Program. Nextleaf Labs efficiently toll processes cannabis biomass into distilled THC and CBD oils, and sells the resulting bulk cannabinoids through the program and the Canadian wholesale market.

Bolstering its IP portfolio

Nextleaf said it continues to bolster its IP portfolio by commencing trials of its proprietary pesticide remediation process with the goal of solving the industry's prevalent pesticide drift challenge. The current contamination struggles experienced by licensed cultivators growing in repurposed greenhouses and outdoor fields is being magnified when cannabis and hemp biomass is processed into concentrated oils. 

The company hopes to provide its clients with a viable scaled solution next year and believes the proprietary technology will have significant commercial value in other jurisdictions that require legal cannabis products to be tested for banned pesticides.

With increased production of cannabis 2.0 products across Canada, product differentiation has become paramount for producers as they compete for market share. Nextleaf said it plans to begin offering sensory and palatability trials under Nextleaf Labs' existing research licence upon Health Canada approving the licence amendment, as an additional value-added B2B service.

Nextleaf is developing IP around unique formulations and delivery methods of THC and CBD. The company increased its R&D efforts focused on commercializing a THC powder format of its Rapid Emulsion Technology by OILS. With dissolvable THC powder outselling most ready to drink infused beverages in Canada, Nextleaf is preparing to launch its patent-pending rapid emulsion technology in THC drops and dissolvable powder formats.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham



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