Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) (FRA:L0MA) is getting into the lucrative branded consumer products sector in a major step forward for the cannabis company.
The company has acquired the rights for the award-winning Glacial Gold specialty concentrates and extracts brand, it said in a statement.
According to Nextleaf, the brand has earned “deep loyalty” with its customers for its value and “gained recognition through distribution” on a national level.
READ: Nextleaf boosts CBD supply as its subsidiary strikes an initial supply agreement with a hemp partner
Glacial Gold pioneered many processing techniques as part of its product development, such as triple-distilled, cold extraction, the company added.
"In alignment with our B2B extraction and processing business, this launch into B2C branded products allows us to fulfill the value of our IP through commercialization, diversify revenue streams, and utilize the cannabis plant to its full potential," said Nextleaf CEO, Paul Pedersen. "Our established advantage in processing efficiency, and low-cost, high purity cannabinoid ingredients translates easily into manufacturing Glacial Gold products at scale."
Vancouver-based Nextleaf and Glacial Gold have signed a copyright release outlining the rights for Nextleaf to use the "Glacial Gold" brand identity on any products and formulations at the company's discretion, as well as an existing online presence and audience base across multiple channels. The company plans to refresh the brand as part of its launch strategy while maintaining its “fun, engaging” authenticity, it added.
The brand will first be made available in British Columbia and Alberta, with additional expansion across Canada anticipated later this year.
Emma Andrews, Nextleaf’s director of marketing, told shareholders that the company has its sights set on additional product formats for Glacial Gold.
“This is a brand everyone can enjoy,” Andrews said. "We've been building towards this gold-rush and we're ready to shake things up."
Nextleaf issued 440,000 shares at a deemed price of $0.25 per share as part of the acquisition of Glacial Gold rights.
Warrant exercise
Separately, Nextleaf said it had extended its warrant exercise incentive program to encourage holders to exercise up to 10.4 million outstanding warrants through July 15, 2021 from May 15. The exercise price is $0.265 per share.
Under the incentive program, warrant holders who exercise by July 15 will receive an additional warrant for each one exercised. The incentive warrant is exercisable at $0.35 per share until July 15, 2022 and subject to acceleration.
Contact Angela at angela@proactiveinvestors.com
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