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Nextleaf Solutions Ltd C.OILS

Alternate Symbol(s):  OILFF

Nextleaf Solutions Ltd. is a cannabis processor with a portfolio of federally regulated emerging consumer brands, market validated cannabis derivative products, and high-potency bulk ingredients. The Company’s multi-patented, highly automated, closed loop extraction, and distillation technology sets the global standard for processing cannabis at scale. The Company manufactures over 80 different products, across four categories for white label clients and house brands. It manufactures and distributes cannabis vapes and oils under multiple brands including its brand, Glacial Gold, and the High Plains brand. The Company sells its branded cannabinoid vapes, oils, and soft gels to the British Columbia Liquor Distribution Branch (BCLDB), Ontario Cannabis Store (OCS), Nova Scotia Liquor Commission (NSLC), Manitoba Liquor & Lotteries (MBLL) National Cannabis Distribution in Saskatchewan, and across Canada through multiple medical platforms, select pharmacies, and a distribution agreement.


CSE:OILS - Post by User

Comment by LastoftheFrankson Dec 10, 2020 5:42pm
135 Views
Post# 32084826

RE:RE:RE: New Deal

RE:RE:RE: New Deal

Toll processing with CO2 is not profitable for reasons laid out on this wall innumerable times. 1000kg would take Nextleaf ~3 days with one shift, CO2 would be 1 week - several depending on the number of machines and staff. You also have to factor what value added services were applied pricing wise (is it being returned in a vape pen, as distillate, or crude).

This is why I'm waiting for quarterlies with numbers that will demonstrate margins. There's no use wasting time by applying Medipharms/Valens margins since it's a completely different process. 

By not spending capital on biomass their expenses are effectively limited to opex of running the facility, sales breakeven is 50kg-60kg per month. Any sales beyond that is entirely profit. With OCS rolling out stores at significantly increased rates and the market having doubled monthly sales YoY (September 2019: $130M / 2020: $256M) they're stepping into a completely different market than the one Valens and Medipharms stumbled into. 

 

While Im here, Eve & Co's bath bombs are neat but they are just an advertisement for Nextleaf's distillate if anything. That deal was toll processing where Nextleaf kept a portion of the oil as payment. If they blow up, great, lots of future orders. If not oh well, there's a ton of other companies with old biomass to unload. 

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