VANCOUVER — Nextleaf Solutions Ltd. (“Nextleaf Solutions”, “OILS”, or the “Company”) (CSE: OILS) (OTCQB: OILFF), Canada’s most innovative cannabis extractor, is pleased to announce that Nextleaf Labs Ltd. (“Nextleaf Labs”), a Health Canada licensed standard processor whose acquisition by OILS is pending, has entered into a Cannabis Extraction Agreement (the “Agreement”) with a well-known cannabis producer based in Ontario who operates a 10-acre greenhouse licensed for cannabis cultivation (the “Client”).
Cannabis Extraction AgreementPursuant to the Agreement, the Client will provide cannabis biomass which Nextleaf Labs will process into refined and distilled THC and CBD oils using OILS’s patented and proprietary extraction technology. The bulk distilled THC and CBD oils will be supplied to the wholesale market by Nextleaf Labs, with net proceeds of such sales expected to be shared by Nextleaf Labs and the Client. The initial term of the Agreement will end on the earlier of (a) 12 months, and (b) the date upon which 15 metric tons of biomass has been processed, and automatically renews thereafter for successive one year terms. Over the initial term, the Agreement has the potential to generate up to $16MM in gross revenuei for Nextleaf Solutions, who receives the economic benefit of processing activities conducted by Nextleaf Labs pursuant to agreements between the companies.
“Our stakeholders have been eagerly awaiting the commercialization of Nextleaf Solutions’ proprietary extraction technology. We are pleased Nextleaf Labs’ first large cannabis extraction agreement is with such a strong cultivator, who has been an early industry leader producing exceptional quality product at a large scale,” stated Nextleaf Solutions CFO, Charles Ackerman. “We believe we are delivering on the overall mission of building a fundamentally-sound Company that operates one of the most efficient, technology-driven cannabis oil refineries in Canada, and we look forward to taking the business into the next phase of growth,” continued Ackerman.
Nextleaf believes there is significant opportunities to monetize lower-grade cannabis materials into high-purity distilled oil. Investments in technology enable the delivery of efficient, scalable, and lower cost solutions to B2B partners and customers, driving higher margins and ultimately a competitive barrier for the Company over the long-term.
OILS is Canada’s most innovative cannabis extractor, developing technology for extracting and distilling THC and CBD oils from cannabis and hemp biomass. The Company’s industrial-scale extraction and purification plant in Greater Vancouver, BC has a design capacity to process 600 kg per day of dried cannabis biomass into refined oils. Nextleaf owns a portfolio of over 15 issued patents and over 60 pending patents for the extraction, purification, and formulation of cannabinoids. Nextleaf Solutions commercializes its patent portfolio through IP licensing, and supplying THC and CBD oils through Nextleaf Labs, a Health Canada licensed standard processor.Nextleaf Solutions trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB Market in the United States, and L0MA on the Frankfurt Stock Exchange.