Nextleaf Solutions Ltd (CSE:OILS) (OTCMKTS:OILFF) received its Standard Processing License from Health Canada, the company announced Monday, which will allow it to begin production of its intellectual property portfolio.
The company has a roster of four issued and 25 pending patents centered around the industrial extraction of cannabis oils and the purification of cannabinoids, such as tetrahydrocannabinol (THC) and cannabidiol (CBD).
Namely, the company said its patented cryo-ethanol process and hardware will allow it to manufacture standardized THC and CBD products.
The plan, the company added, is to put itself in pole position for when the production and sale of cannabis oils, concentrates and edibles becomes legal later this year.
"Our vision is to develop technology to revolutionize extraction throughput, yield, and purity to enhance cannabis oil economics across the globe," CEO Paul Pedersen said in a statement. "We are beyond excited to begin commercializing OILS' intellectual property portfolio for industrial-scale extraction and purification of CBD and THC."
Before landing its Health Canada license, Vancouver-based Nextleaf had been licensing its IP and infrastructure in British Columbia, the company said. Now, it will begin providing business-to-business toll processing and white label production for companies in Canada and abroad.
Shares of Nextleaf declined 6.3% Monday to C$0.60 on the CSE and 5.8% to US$0.45 on OTC Markets.
—Updated to include stock movement—
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel