Through Nextleaf Lab’s existing intellectual property and infrastructure, Nextleaf Solutions said in a statement, it will be able to extract, refine, purify, and formulate cannabinoids such as THC and CBD -- the precursor ingredients for a variety of infused cannabis products becoming legal in Canada as of October 17.
"With this consolidation, we will expand on our foundation from developing intellectual property, into the delivery of toll processing and white labeling services to leverage OILS' IP through Labs' Standard Processing Licence," said Paul Pedersen, CEO of Nextleaf Solutions.
Nextleaf Labs’ 6,540 square foot facility, located in the greater Vancouver area, was granted a Standard Processor licence on September 6, and the licensing process was led by Tom Ulanowski, president of Nextleaf Labs.
"Nextleaf has developed efficient, scalable technology for the cannabis and hemp extraction industry, and has protected their IP in a number of jurisdictions where cannabis is - or will likely be - legal," said Ulanowski. "At this time, our focus is on commissioning the phase one custom extraction and purification system and finalizing commercial contracts, in time for the next wave of legal cannabis products."
In 2018, Ulanowski led the effort to manufacture and bring to market the first legal concentrated cannabis product to be sold in Canada, Nextleaf Solutions said.
Under the share purchase agreement for the acquisition of Nextleaf Labs, Nextleaf Solutions will issue 1 million common shares to Ulanowski at a price of $0.385 per share for aggregate consideration of $385,000.
The shares issued under the agreement will be subject to a pooling arrangement which restricts the ability of the holder to transfer or trade the shares. The shares will be released from the pooling arrangement over a period of 18 months, with 25% of the shares released immediately upon completion of the acquisition and the balance released in three equal tranches every six months thereafter.
In other company news, Vancouver-based Nextleaf Solutions has awarded key management 300,000 options, pursuant to the company's Stock Option Plan, exercisable at a price of $0.50 per common share and vesting in December 2020.
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