Nextleaf Solutions Ltd (CSE:OILS, OTCQB:OILFF) said that its wholly owned subsidiary Nextleaf Labs Ltd has received acceptance of its application for a Controlled Substances Dealer's Licence, now formally under review by Health Canada.
The licence will allow Nextleaf Labs to conduct a variety of activities relating to psilocybin and psilocin -- including research and development (R&D), intellectual property (IP) development, production of base substance materials, laboratory analysis, as well as the sale and distribution of the psychedelic compounds to authorized individuals (or their compounding pharmacies), researchers and companies undertaking clinical trials.
Health Canada targets a processing service standard of 270 calendar days from the date of receipt of an application for a Dealer's Licence.
READ: Nextleaf Solutions launches highest potency CBD oil in Canada
With a full laboratory already operating under its existing Health Canada cannabis licences, Nextleaf said its current site will expand its capabilities in extraction and IP development for psilocybin and other psychedelic materials upon the issuance of a Dealer's Licence.
Nextleaf noted that its existing IP stack, the development of its Specialty Molecules Division, and receipt of a Dealer's Licence will allow the company to develop a suite of standardized naturally-derived prodrugs ranging from acetylated cannabinoids to psilocybin. This may present new revenue drivers through opportunities for short-term and long-term partnerships with other industry stakeholders.
Nextleaf owns 17 US patents and has been issued 95 patents globally as the company continues to strengthen its robust IP portfolio, pursuing federally regulated production of novel psychoactive products, as large multinational pharmaceutical companies enter the space.
"With our company's unprecedented track record securing issued U.S. patents for the extraction of cannabinoids, Nextleaf is well positioned to mirror that success with psilocybin extraction," said Paul Pedersen, co-founder and CEO of Nextleaf, in a statement.
"We anticipate that a Dealer's Licence will be a major catalyst with respect to Nextleaf's Specialty Molecules Division, which is focused on the development and commercialization of novel psychoactive compounds for their potential therapeutic benefits."
Contact the author: patrick@proactiveinvestors.com
Follow him on Twitter @PatrickMGraham