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Nextleaf Solutions says subsidiary Nextleaf Labs strikes cannabis extraction deal with Natural MedCo

Natural MedCo (NMC) will provide cannabis biomass to be processed into distilled THC and CBD oils at Nextleaf's closed-loop extraction plant in Metro Vancouver

cannabis
NMC operates over 1 million square feet of licensed production and distribution through provincial adult-use channels and international markets

Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) (FRA:L0MA) announced Monday that subsidiary Nextleaf Labs Ltd has entered into a cannabis extraction agreement with Natural MedCo Ltd (NMC). 

NMC, a wholly-owned subsidiary of Eve & Co Incorporated (CVE:EVE) (OTCQX:EEVVF), is based in Strathroy, Ontario and operates over 1 million square feet of licensed production and distribution through provincial adult-use channels and international markets. 

Under the agreement, Nextleaf said NMC will provide cannabis biomass to be processed into distilled THC and CBD oils at Nextleaf's closed-loop extraction plant in Metro Vancouver. 

READ: Nextleaf Solutions wins second US patent for the acetylation of cannabinoids

The resulting bulk THC and CBD oils will be sold by Nextleaf Labs through its Commercial Partners Program and the wholesale market, with the net proceeds of such sales to be shared by Nextleaf Labs and NMC. 

The initial term of the agreement will end on the earlier of:

(a) 12 months; and

(b) the date upon which 5,000 kilograms of cannabis biomass has been processed, and automatically renews thereafter for successive one-year terms.

Nextleaf said its investment in intellectual property (IP) and its existing fixed-asset base provides a robust platform to scale, and a clear competitive advantage to supply low-cost cannabinoid distillate produced at the company's ultra-efficient cannabis oil refinery in British Columbia.

"We are excited for the opportunity to support the launch of Eve & Co's female-focused cannabis 2.0 product lines in Canada," said Nextleaf CFO Charles Ackerman in a statement. "Given our partner's European Union certificate of Good Manufacturing Practise Compliance, and their ability to distribute into Germany, we expect to have opportunities to supply global markets with bulk THC and CBD oils and differentiated products.”

Melinda Rombouts, CEO of Eve & Co, added: "We are excited about the opportunity to work with Nextleaf, which is such a ground-breaking company, and the opportunities our partnership will bring. Alliance with this group adds another revenue stream, which aligns well with our 2.0 female-focused product line and exports to the European Union."

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

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