Nextleaf Solutions Ltd. (OILS) has entered into a hemp processing agreement with Green Light Solutions (GLS).
Green Light Solutions is a British Columbia based company which develops high quality CBD products through its wholly owned subsidiary, JOE'S Hemp Shack Inc.
Walker Patton, head of Corporate Development at GLS said, JOE'S is excited to have a premier manufacturing partner to advance its product mandate - delivering a high-quality range of CBD products derived from sustainably grown Canadian hemp.
"Nextleaf's unparalleled extraction capabilities are driven by manufacturing excellence and supported by continual innovation through its IP strategy. This partnership complements JOE'S partner ecosystem in its mission to produce best-in-class, market-focused product innovations for next-generation cannabis market segments," Patton said.
Pursuant to the processing agreement, JOE'S provides hemp biomass to be processed into CBD refined oil or distillate at Nextleaf's processing facility.
The pricing and value of the processing agreement is based upon the volume of distillate produced by Nextleaf Labs from JOE'S hemp biomass, and the extraction services are paid for in cash.
Nextleaf CFO, Charles Ackerman said adding a high quality hemp partner to Nextleaf's Commercial Partners Program has been a top priority for the company.
"JOE'S ideology around their CBD products aligns perfectly with OILS vision. Nextleaf will supply high purity CBD refined oil and distillate to help power JOE'S CBD product strategy," Ackerman said.
"The first order should be completed in Q1 of 2021 to service JOE'S distribution needs to select provinces."
This strategic partnership, targeting high-potential CBD product segments in retail and wholesale markets, is supported by Nextleaf's domain expertise in extraction and JOE'S vast supply network, including distribution, and innovative product development platform.
Nextleaf Solutions Ltd. is trading for C$0.20 per share.