Nextleaf Solutions Ltd (CSE:OILS, OTCQB:OILFF) has provided an update on its patented novel route of manufacturing D9-tetrahydrocannabinol acetate (THC-O) produced by its Specialty Molecules division, saying it has become the first company in Canada to legally produce THC-O.
The cannabis vapes and oils manufacturer/distributor said it has recently produced THC-O under its Health Canada Research Licence in anticipation of commercialization and has validated the manufacturing process through third-party analytical testing.
“With Nextleaf's reputation for manufacturing standardized cannabinoid-based ingredients, and distributing Glacial Gold branded products through provincial government distributors, and pharmacies from Coast to Coast, we are excited to lead the way globally on the development of excise tax-free THC-O products manufactured within Health Canada's regulatory framework,” Nextleaf Solutions CEO Paul Pedersen said in a statement.
READ: Nextleaf Solutions sees 2Q revenue jump as its cannabis brand Glacial Gold outsells competitors on vapes and oils in British Columbia
Nextleaf noted that it is the company’s understanding that THC-O is not subject to a regulated cannabis extract excise tax in Canada, which is currently based on the amount of total delta-9-THC present.
It added that excise tax is a critical issue in the industry, with some cannabis products manufactured with delta-9-THC subject to excise tax over 40% of the duty paid landed cost to provincial government distributors and medical cannabis distributors.
As well, Nextleaf said with THC-O, it sees potential for market disruption by marketing its novel cannabinoid ingredient as an excise tax-free alternative to delta-9-THC, and intends to commercialize the ingredient as a therapeutic product distributed to provincial distributors and medical cannabis sales partners under the company's Health Canada cannabis licenses.
THC-O products have a more gradual onset, are longer-lasting, and have psychedelic-like effects, as compared to delta-9-THC, according to the company, which holds US and Canadian patents, along with a US patent for a less efficient method to produce THC-O.
Nextleaf is a federally regulated manufacturer and distributor of cannabis vapes and oils under its award-winning prohibition-era brand Glacial Gold.
Contact Sean at sean@proactiveinvestors.com