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Nextleaf Solutions Ltd C.OILS

Alternate Symbol(s):  OILFF

Nextleaf is a federally regulated manufacturer and distributor of cannabis vapes and oils under its prohibition-era brand, Glacial Gold. The Company’s multi-patented ingredient processing technology transforms cannabis and hemp biomass into high-purity distillate at an industrial scale. Nextleaf is a low-cost producer of cannabis oils, and supplies THC and CBD ingredients to partners across Canada. Nextleaf has been issued 19 U.S. patents and over 100 patents globally, on cannabinoid processing.


CSE:OILS - Post by User

Comment by Rm90090on Feb 06, 2021 1:34pm
117 Views
Post# 32493353

RE:And it seems like the markets don’t really care

RE:And it seems like the markets don’t really care

(I'm Not a lawyer) Just my opinion.

 The main difference between the Patents within the lawsuit and NL's patents are the origins of the methods being used. NL has patented methodology and equipment that they have CREATED. The patents act as a defensive wall around THEIR created technology.  Canopy may use a court win as a sword to slay any possible competition that also uses CO2 extraction.

(From a legal article on the case)

<"Canopy will have to prove that its patent is the first recorded example of the use of the technology described. 

For GW Pharmaceuticals to win, the company will have to demonstrate that its method, described in broad terms on its website, uses technology not claimed in Canopy’s patent—or that the technology that Canopy’s new patent claims were “known or obvious” in 2000, when the patent application was filed">

So, If Canopy didn't create the tech or methodology - they have to prove that they are the first to use it. However, I imagine that GW will say that it was a commonly used methodology, albeit being used illegally. If the court doesn't recognize illegal use as legitimate then I think Canopy has a better chance.

If Canopy loses - at first it may seem like patents have less value; but NL's patents are around their OWN tech that THEY created. The ability to process efficiently AT SCALE is going to be more and more important eventually.

From the outside, this court case seems to do 2 things:

1) Legitamise the value of IP around methodology in the Cannabis industry simply by it being fought over by large companies. Not all patents will hold up. Original innovation may prove to be the most important.

2) Get all Cannabis companies to think about their extraction methods and possible alternatives.

If Canopy loses, then I imagine all the companies will continue doing their business the same way. But US legalization is coming, and competition will take over. Eventually, more efficient methods will become very important. This is where NL comes in if they can convince big Pharma that their tech and methods are a competitive advantage.

If Canopy wins, then all of these Cannabis companies will have to potentially pay Canopy royalties; or switch to another methodology. NL could be perfectly positioned to help these companies transition by licensing their IP. This is where Kronos (the comoany Nl hired) comes in as hopefully they can introduce NL to a lot of these large Pharma firms.

Lastly, if Canopy wins - a large Pharma company may just decide to buy NL for exclusive rights to one of the few extraction methodologies available that will be in huge demand. At this point, the stars could align where NL will have the poison pill protecting themselves from a hostile takeover. Thus, as demand is increasing for extraction tech, NL is ready to be bought by the highest bidder - by large Pharma companies with deep pockets.

I am eagerly watching.

jmo

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