Nextleaf Solutions Ltd. (CSE:OILS) (OTCQB:OILFF) has revealed that it has boosted its CBD supply through its wholly-owned subsidiary Nextleaf Labs Limited, which has struck an initial supply agreement with a reputable British Columbia-based hemp supplier for CBD-rich biomass.
The Vancouver-based company said the supplier will provide a “high-quality economical source of hemp biomass” which Nextleaf Labs will process into refined and distilled CBD oils using Nextleaf's patented extraction and purification platform.
The bulk distilled CBD oils will be supplied to both the wholesale market and directly to provincially authorized distributors and retailers across Canada by Labs. “The net proceeds of such sales are expected to be shared by Nextleaf Labs and the client to maintain a working capital efficient supply,” noted the company.
"We are very pleased to work with a reputable, BC-based partner who has a nationwide network of validated CBD rich hemp farms to meet our increasing demand," Nextleaf CFO Charles Ackerman said in a statement. "It's been a top priority for us to partner with a hemp supplier under a cost-effective model to supply Nextleaf with CBD-rich hemp at the appropriate scale to leverage what we believe to be the most efficient cannabis and hemp oil refinery in Canada."
In more updates on its CBD business, Nextleaf said it is supporting one of its partners, a pioneer in cannabis production in Atlantic Canada, to create high-purity CBD-based products leveraging a proprietary formulation.
“On completion of the final product validation, Nextleaf will provide ongoing bulk CBD supply and manufacturing services to support the launch of their CBD products to authorized distributors and retailers,” said the company.
Separately, Nextleaf said that it has “completed successful scale-up trials for a variety of market validated liquid-based product formats” manufactured with the company's proprietary CBD Rapid Emulsion Technology by OILS.
The commercial launch of Rapid CBD comes at a time when Nextleaf is seeing great demand for its novel cannabinoid delivery technology in the beverage and edibles segments of Cannabis 2.0 products, the company pointed out.
In addition, Nextleaf is working towards finalizing the development of a new powdered version of its proprietary CBD Rapid Emulsion Technology. It expects commercialization of the ingredient in several additional product types to begin this year, said the firm.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive