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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 Rm90090on Feb 13, 2021 6:16pm
130 Views
Post# 32563041

RE:RE:RE:Bevcanna Partnership?

RE:RE:RE:Bevcanna Partnership?

My question about the Bevcanna situation is that they said in their conference call that NL would be a supplier, along with others based on the client's preference for ingredients. This is all well and good, but they specifically signed an exclusive agreement to be the only supplier https://www.businesswire.com/news/home/20190916005465/en/BevCanna-Announces-Exclusive-Supply-Agreement-with-Nextleaf-Solutions-for-Water-Soluble-Cannabinoids

If Bevcanna is changing things, what is the value in even having these agreements? Is NL going to (or have they already) discussed the legal aspect of the exclusivity of the agreement? Have they come to another agreement? Has NL decided not to be confrontational about this as the legal costs and bad publicity wouldn't be worth it?

I think a lot of investors have questions because Bevcanna has already indicated they don't plan on being exclusive. If they already aren't planning on following the agreement, what's to stop them from not using NL altogether? 

Many investors may say "who cares?" because NL can just move on to other customers. But a lot of investors jumped in with this agreement. Also, investors need to have confidence with any future agreements with companies as well.

I am long on OILS because I Beleive in the strategy of Intellectual Property. But I would like to find out whether we can still count on the revenue from Bevcanna or not. Perhaps we will get answers soon as Bev just received their license.

In the same vein - an update on the status of the IP deal with the equipment manufacturer would be ideal.

Just to be clear - I am invested long term because I like the IP strategy. But some of the existing deals need some clarification.

jmo

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