Cannabis 2.0 has been a boon for cannabis extraction company Nextleaf Solutions Ltd. (CSE:OILS)
SmallCapPower | May 22, 2020: As many smaller cannabis-related business are fighting for survival, Nextleaf Solutions Ltd. (CSE:OILS) has been actively entering into new agreements during the COVID-19 pandemic. On April 2, 2020, Nextleaf Solutions announced that it has entered into a Cannabis Extraction Agreement with an Ontario-based cannabis cultivator, which has the potential to generate up to $16 million in gross revenue for Nextleaf Labs, the Company’s pending acquisition, over the next 12 months.
Then, on April 13, 2020, Nextleaf reported another Cannabis Extraction Agreement, this time with a cannabis producer in Atlantic Canada, in which Nextleaf Labs will process 10 metric tons of cannabis biomass into refined and distilled oils. And, on May 4, 2020, Nextleaf Solutions said it has been issued patents in Germany, France, and the United Kingdom pertaining to the Company’s proprietary technology for post-extraction processing of cannabinoids.
Nextleaf Solutions is a Vancouver-based cannabis extractor, developing technology for extracting and distilling THC and CBD oils. Nextleaf’s industrial-scale extraction plant has a design capacity to process 600 kg per day of dried cannabis biomass into refined oils. The Company owns a portfolio of over 20 issued patents and 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, the Company’s pending Health Canada licensed standard processor.
Earlier this year, Nextleaf Solutions acquired the intellectual property pertaining to the nano delivery of cannabinoids, including the foundational processing methodology and two water soluble formulations. This is significant as the Company has the potential to tap into the $2.0B to $3.0B non-alcoholic, cannabis-infused beverage market in Canada.
According to Molson Coors’ CEO Mark Hunter, the non-alcoholic, cannabis-infused beverage market in Canada could make up 30% of the total Canadian cannabis market, which he estimates could total $7B to $10B over time. The major challenge in making a cannabis beverage is the unpredictable and lingering onset and offset. Currently, cannabis beverages have a long onset (45 min to 90 min) and a long offset (6 hours to 8 hours). With this technology, Nextleaf has the potential to create cannabis beverages that mimic the effect and duration of alcoholic beverages could command significant market share.
Shares of Nextleaf Solutions have climbed more than 30% during the past month to its current price of $0.30.
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