Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) announced Thursday that it has commenced human trials of cannabis vapes.
Under its amended Cannabis Research Licence from Health Canada, the company said it is collecting sensory evaluation data from qualified volunteers completing organoleptic assessments of a wide variety of formulated cannabis vape products.
Nextleaf said it is comprehensively testing a range of cannabinoid and terpene formulations, including how various vape hardware interacts with different formulations. It expects to accelerate product development and drastically shorten design cycles for launching new cannabis vape products by validating formulations and delivery technologies more efficiently.
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"The amended Cannabis Research Licence allows Nextleaf to rapidly formulate a wide variety of cannabis products and administer samples to volunteer research participants," said Nextleaf Solutions R&D Lead, Dr David Novitski, in a statement. "The ability to provide commercial partners with data-based consumer insights around taste and overall user experience is a true game-changer for product development."
The data collected from the human trials program is being used by the company and its commercial partners to launch vape products into adult-use markets across Canada.
Since becoming legal in Canada, vapes have emerged as the clear leader of all cannabis 2.0 products. According to the most recent data from the Ontario Cannabis Store, the vape category ranks second only to dried flower with 15.7% of all Ontario cannabis sales.
In more mature adult-use markets like Colorado, Oregon, and Washington the market share for cannabis vapes reached as high as 22.3%, according to data from Headset.
As Canada continues to roll out brick and mortar cannabis retail stores, the vape segment is expected to continue to increase in overall size and market share. The company believes the CBD vape subcategory could see significant growth should Health Canada regulations change to allow for increased legal access to CBD products.
Nextleaf said collecting data-based consumer insights is particularly important in an increasingly competitive market in which initial product launches can dictate the long-term success of a brand.
"There are a lot of subpar vape products available in the market today that have not gone through rigorous testing and human trials," said CEO Paul Pedersen. "Issues such as poor taste, clogging, leaking, and crystallization in CBD vapes are well documented throughout the industry. Collecting consumer feedback during product development is key to launching differentiated cannabis 2.0 products that provide consumers with a positive experience and value."
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Nextleaf also said it is well-positioned with its product innovation pipeline and success securing issued patents in the US. Nextleaf owns 12 US patents and has been issued over 70 patents globally.
In other company news, through its wholly owned subsidiary Nextleaf Labs Ltd, it announced the addition of an Atlantic Canada-based producer to the OILS Commercial Partners Program. The company has executed an initial bulk sale of high purity cannabis distillate to support its partner's commercial launch of large-format vape products.
Nextleaf expects this commercial supply transaction to lead to a long-term white label supply partnership, with Nextleaf powering its partner's vape brand distribution strategy in Atlantic Canada and other future provincial markets.
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