Nextleaf Becomes First in Canada to Legally Produce THC-O
Vancouver, British Columbia--(Newsfile Corp. - June 23, 2022) - Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA) ("Nextleaf" or the "Company"), a federally regulated manufacturer and distributor of cannabis extracts including vapes and oils, is pleased to provide an update on its Specialty Molecules division, specifically the Company's patented novel route of manufacturing D9-tetrahydrocannabinol acetate (D9-THC-OAc, delta-9-THC-OAc, THC-OAc), colloquially referred to as THC-O ("THC-O").
Nextleaf has recently produced THC-O under the Company's Health Canada Research Licence in anticipation of commercialization. Nextleaf has validated its manufacturing process of THC-O through third-party analytical testing.
The Company is of the understanding that THC-O is not subject to excise tax as it does not meet the definition of "Total THC" as defined under the Excise Act 2001, which is aligned with the definition of the same in the Cannabis Act.
In Canada, excise tax of a regulated cannabis extract is based on the amount of total delta-9-THC present. Excise tax is a critical issue in the industry, with some cannabis products manufactured with delta-9-THC subject to excise tax over 40% of the duty paid landed cost to provincial government distributors and medical cannabis distributors.
With THC-O, Nextleaf sees potential for market disruption by marketing its novel cannabinoid ingredient as an excise tax-free alternative to delta-9-THC. Nextleaf intends to commercialize the ingredient as a therapeutic product distributed to provincial distributors and medical cannabis sales partners under the Company's Health Canada cannabis licences.
Anecdotally, THC-O products have a more gradual onset, are longer-lasting, and have psychedelic-like effects, as compared to delta-9-THC.
"With Nextleaf's reputation for manufacturing standardized cannabinoid-based ingredients, and distributing Glacial Gold branded products through provincial government distributors, and pharmacies from Coast to Coast, we are excited to lead the way globally on the development of excise tax-free THC-O products manufactured within Health Canada's regulatory framework," said Nextleaf Co-Founder and CEO, Paul Pedersen.
Nextleaf's patented process to manufacture THC-O enables the standardization of a more potent analog of THC. The Company holds U.S. and Canadian patents, along with a U.S. patent for a less efficient method to produce THC-O.
Since the 2018 Farm Bill was passed in the United States, unregulated hemp derived CBD is sold nationwide in the U.S., even in states that have not legalized Delta-9-THC. Because THC-O can be synthesized from hemp, the United States is seeing a surge in popularity for unregulated products marketed as hemp derived THC-O. These products are now being sold alongside the unregulated hemp derived cannabidiol (CBD) products on shelves at gas stations and corner stores throughout the United States.
Nextleaf develops cannabinoid-based vape formulations under its Health Canada Research Licence with sensory evaluation of cannabis via human testing.
CEO Paul Pedersen joined Steve Darling from Proactive to provide more insight: https://www.youtube.com/watch?v=tTp6cyuEemw
About Nextleaf Solutions Ltd.
Nextleaf® is a federally regulated manufacturer and distributor of cannabis vapes and oils under its award-winning 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 supplier of THC and CBD ingredients to qualified wholesale partners across Canada. Nextleaf is the first publicly traded company to be issued a U.S. patent for the industrial extraction and purification of cannabinoids. The Company has been issued 18 U.S. patents, and over 95 patents globally, on cannabinoid processing including distillation and acetylation. Nextleaf develops cannabinoid-based formulations and delivery technology through its Health Canada Research Licence with sensory evaluation of cannabis via human testing. For more information visit www.nextleafsolutions.com and www.Glacial.Gold
Nextleaf trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB Market in the United States, and L0MA on the Frankfurt Stock Exchange.
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Jason McBride, Corporate Development
604-283-2301 (ext. 219)
jason@nextleafsolutions.com
On behalf of the Board of Directors of the Company,
Paul Pedersen, CEO
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding the Company's anticipated delivery of its products to provincial markets across Canada and those regarding the Company's strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company's MD&A for the most recent fiscal period. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. The Canadian Securities Exchange has not reviewed or approved the contents of this press release.
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