Nextleaf Solutions Ltd (CSE:OILS) (OTCMKTS:OILFF) closed out 2019 by obtaining its 11th patent - for its filtration stack used in post-extraction processing of THC and CBD oils.
The company has now been issued these patents by four international patent offices in key markets of Canada, the United States of America, Australia, and Colombia.
"Given the abundant supply of lower-grade dried cannabis, we believe processors that establish a competitive advantage by utilizing superior technology to transform otherwise unsellable biomass into high-purity THC and CBD oils at a lower cost than competitors, will generate better margins and build a sustainable long term business," Paul Pedersen, the CEO of Nextleaf Solutions, noted in a statement on Monday.
Running through the milestones last year, the group noted it had become the first public company granted multiple patents for industrial-scale extraction and purification of cannabinoids.
In June, it acquired a US patent pending hydrocarbon extraction process and award-winning formulation for THC concentrate, commonly known as "shatter".
It said it remains committed to developing and monetizing its intellectual property (IP) for innovative cannabis 2.0 products.
Notably, it started generating licensing royalties in 2019, and expects to realize between C$5 million and C$10 million in licensing royalties in 2020.
Other highlights included the completion of its custom extraction plant in December. This phase 1 plant, operating within the Nextleaf Labs Ltd. licensed production facility, can process the same amount of cannabis biomass into a refined oil as eight large supercritical CO2 extractors.
In September, Nextleaf acquired intellectual property (IP) pertaining to water-soluble cannabinoid formulations. The technology uses food grade emulsifiers already approved by Health Canada to create water-soluble cannabinoids that are shelf stable and deliver fast onset time.
Nextleaf believes fast-acting THC and CBD emulsification technology in cannabis beverages will prove disruptive to the alcohol industry and it expects to monetize this technology in 2020.
And in November, Nextleaf completed commissioning of its automated vape cart filling line that has capacity to fill 3,000 vape cartridges per hour.
Shares in Toronto nudged up 1.67% to C$0.30 on the day.
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