Nextleaf Solutions Ltd (CSE:OILS, OTCQB:OILFF) told investors that its technology, which allows the production of THC-free CBD from industrial hemp feedstock, has been validated and that it is eyeing the launch soon of its first THC-free CBD product.
Nextleaf said it has validated its hemp extraction and manufacturing process via third-party analytical testing and expects to announce more details in coming weeks on the launch of its first THC-Free CBD product along with the sale of bulk cannabinoids to B2B customers.
Under current legislation, a pure CBD product is defined as one containing less than 0.3% Tetrahydrocannabinol (THC).
Nextleaf's intellectual property (IP) covers the tech, which can refine the CBD distillate below that defined threshold.
"The result is an excise tax-free, broad-spectrum, THC-Free CBD ingredient that may have mass market therapeutic and wellness appeal for consumers looking for all the benefits of CBD with the minor cannabinoids found within the plant, without the THC effects," the company said.
READ: Nextleaf Solutions announces the launch of its new Glacial Gold CBD 3:1 Vape expected to hit British Columbia this summer
Nextleaf co-founder and CEO Paul Pedersen added: "We are incredibly excited for this technology to remove the THC and get the tax out of our CBD oils.
"Adding THC-Free CBD ingredients to our portfolio is further validation of our team's ability to innovate and will help unlock mass market CBD therapeutic products."
Nextleaf believes that excise tax-free molecules like THC-Free CBD will be a disruptive ingredient in Canada, and an alternative to CBD isolate for those that prefer a "more holistic cannabis product".
The firm is using the new ingredient to power the next generation of innovative CBD products distributed under its prohibition-era brand, Glacial Gold, and supplying bulk THC-Free CBD ingredients to leading global CPG manufacturers in Canada and where cannabinoids are legal
Also in today's statement, Nextleaf noted that in June this year it announced that it had produced D9-tetrahydrocannabinol acetate (D9-THC-OAc, delta-9-THC-OAc, THC-OAc), colloquially referred to as THC-O.
With THC-O, Nextleaf said it sees potential for market disruption by launching this plant-based cannabinoid ingredient as a tax-free alternative to delta-9-THC.
Federal Regulators have confirmed the company's understanding that THC-O is not subject to excise tax, it said, adding that excise tax on delta-9-THC extracts makes up a large portion of the price consumers pay.
Nextleaf is a federally regulated manufacturer and distributor of cannabis vapes and oils under the Glacial Gold brand.
Contact the writer at giles@proactiveinevstors.com