(Image via Nextleaf Solutions Ltd.)
Nextleaf Solutions Ltd. (CSE: OILS, OTCQB: OILFF, Forum) pending acquiree Nextleaf Labs has just inked its first major
cannabis extraction agreement with a well-known Ontario-based cannabis producer operating in a licensed 10-acre greenhouse.
Cannabis Extraction Agreement:
Via the Company’s April 2nd, 2020 news release, the new client will provide up to 15 metric tons of cannabis biomass for Nextleaf Labs to process it into refined and distilled THC and CBD oils using its proprietary extraction technology. Under the terms of this deal, Nextleaf Labs, a Health Canada licensed standard processor, will sell the oils through the wholesale market and the net proceeds will be shared between the client and Nextleaf.
Shares of the Company jumped more than 27% after this news was released.
(Nextleaf Solutions Inc. Stock chart – March – April 2020.)
Substantial Gross Revenue Potential:
Nextleaf Solutions CFO, Charles Ackerman stated that this agreement has the potential to generate up to $16 million (CAD) in gross revenue.
“We believe we are delivering on the overall mission of building a fundamentally-sound Company that operates one of the most efficient, technology-driven cannabis oil refineries in Canada, and we look forward to taking the business into the next phase of growth.”
Company leadership believes there are also significant opportunities to monetize lower-grade cannabis materials into high-purity distilled oil. Through investments into its proprietary technology, Nextleaf can better deliver efficient, scalable and lower-cost solutions to business to business (B2B) partners and customers. It should, in turn, drive higher margins and ultimately a competitive barrier for the Company over the long-term.
“We believe we are delivering on the overall mission of building a fundamentally-sound company that operates one of the most efficient, technology-driven cannabis oil refineries in Canada.”
Nextleaf Solutions Ltd. Investment Summary:
Nextleaf Solutions commercializes its patent portfolio through IP licensing, and supplying THC and CBD oils through Nextleaf Labs, a Health Canada licensed Standard Processor. Nextleaf’s industrial-scale extraction and purification plant located in Greater Vancouver, BC has a design capacity to process up to 600 kilograms of dried cannabis biomass into refined oils per day. OILS owns a portfolio of more than 15 issued patents and exceeds 60 pending patents for the extraction, purification and formulation of cannabinoids.
This Company boasts an ultra-efficient custom extraction plant and is executing on impressive revenue-generating deals during this time of market uncertainty. Investors should keep their eyes fixed on the ongoing developments behind Nextleaf Solutions Ltd.during their regular due diligence to see what happens next.
nextleafsolutions.com
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.