Nextleaf Solutions Ltd (CSE:OILS) (OTCMKTS:OILFF) continues to commercialize its intellectual property (IP) and is focused on scaling up its biomass processing capability, the cannabis-extraction specialist told investors in an update on Monday.
The firm has also added some highly experienced staff due to the recent downsizing of Canada’s largest cannabis production firms, it added in the statement.
"With an the abundant supply of dried cannabis biomass, Nextleaf Labs is developing a competitive advantage by utilizing more efficient proprietary technology to transform otherwise unsellable biomass into high-purity THC and CBD oils at a lower cost per milligram compared to processors running less efficient off-the-shelf extraction technology," said its chief executive Paul Pedersen.
Notably, Nextleaf Labs Ltd, which the group is set to buy, has struck a bulk supply deal with a British Columbia-based multi-licensed cannabis producer, which is focused on the distribution of adult-use cannabis products through provincial markets.
As part of the agreement, Nextleaf Labs has agreed to supply 50 kilograms of THC distillate to the British Columbia-based producer, it noted.
"This agreement represents an important milestone for the company, allowing OILS to continue the commercialization of its IP portfolio through the production of cannabis oils and concentrates by Nextleaf Labs. OILS owns a portfolio of over 35 issued patents and 65 pending patents for the extraction, distillation, and formulation of cannabinoids," said the company.
Nextleaf said it was also focused on reaching full utilization of over half a tonne of biomass processing per day at its Metro Vancouver cannabis oil refinery this year.
Nextleaf Labs is processing biomass under the cannabis extraction agreement announced in April this year with a 10-acre greenhouse cannabis grower.
"Nextleaf Labs expects to continue scaling its operations through toll processing and the supply of bulk cannabis concentrates. The industry has seen increased demand for economical extraction and distillation due to the legalization of cannabis 2.0 derivative products, and an oversupply of dried cannabis biomass that has a shorter shelf life compared to cannabis oils."
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