Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) (FRA:L0MA) has reported that its subsidiary, Nextleaf Labs Ltd has completed an inaugural bulk-CBD distillate delivery to a US-listed, Canadian-based global cannabis company.
The company added that it anticipates similar orders on an ongoing basis.
While the Canadian cannabis sector continues to mature as the world's largest federally legal cannabis jurisdiction, Nextleaf said the global demand and acceptance of CBD-based products continues to increase.
READ: Nextleaf Solutions wins US patent for therapeutic THC-derived prodrug
The company noted that in December 2020, Israel signed a regulatory amendment permitting the use of CBD in cosmetics and food products, and in February 2021 plant-derived CBD was added as a legal ingredient in cosmetics by a key market regulator for trade in the EU.
According to New Frontier Data, Nextleaf said, US consumer spending on CBD reached $3.8 billion in 2020 and the demand is expected to reach as high as $8 billion by 2025.
"Amidst the global acceptance of CBD as a therapeutic drug, Health Canada has begun the process of reviewing CBD and regulating it differently than THC," said Nextleaf CEO Paul Pedersen in a statement.
"Based on this, we believe the CBD market in Canada is at a fraction of its potential, particularly if CBD products are made available in your local grocers, gas stations, and other traditional points of retail, once the review is complete. We plan on our CBD segment being a major revenue source for Nextleaf thanks to the competitive advantage of our technology and our ability to produce high purity CBD oils at a low cost per molecule.”
Pendersen added: “Completing and delivering the first order with a premium partner is a major milestone for OILS. Working with a partner of this magnitude is further validation of our technology and we are ecstatic to power their CBD-focused brands with OILS' high purity, low-cost CBD ingredients.”
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