- NextLeaf has patented cannabis extraction technology, which is both scalable and repeatable
- There is ample supply of low-quality cannabis and hemp biomass and a lack of extraction and processing capacity in the industry
- Three issued patents, with 24 patents pending in the United States, Canada, Mexico, Colombia, Jamaica, Europe and Australia
- Infused beverages and edibles will be legal in Canada in October 2019, positioning NextLeaf as a front-runner in the space
What NextLeaf Solutions does:
NextLeaf Solutions Ltd (CSE:OILS) (OTCMKTS:OILFF) is a cannabis-extraction-technology company that has a patented process for the commercial-scale production of high-quality cannabinoid distillate, the precursor to every cannabis-infused products.
In short, the Canadian company, based in British Columbia, is bridging the gap from soil to oil, a reflection of its technology, which allows for low-quality, dried cannabis biomass to be processed into a high-purity distilled oil. NextLeaf's timing is apt: with infused beverages and edibles becoming legal in Canada by October 2019, the company is a front-runner in the extraction space.
The fact is that there is ample supply of low-quality cannabis and hemp biomass -- but there's a lack of extraction and processing capacity in the industry. NextLeaf is developing intellectual property around converting the cannabis plant into infused products through a scalable, repeatable process.
NextLeaf focuses on a premium distillate and believes the secret to producing standardized and impurity free cannabis extracts is in the purification and refinement steps, which goes above and beyond the typical crude extraction. Its highly concentrated THC or CBD distillate is odourless, tasteless, and standardized for potency. The firm has three issued and 24 pending patents.
Nextleaf provides processing to licensed cultivators, and supplies cannabis oil and extracts to qualified Canadian and international B2B partners under their own brand. Nextleaf delivers its proprietary technology at both its centralized processing facility in Vancouver, BC and via mobile extraction lab at licensed production facilities.
How is it doing:
NextLeaf has had a busy summer.
In August, the firm completed two government-funded research and development projects, which led to innovation in the cannabis extraction process.
The company worked for a year with the National Research Council of Canada Industrial Research Assistance Program to develop a treatment process to remove chlorophyll, carotenoids and other elements from crude cannabis extract. The project used common hops, which are genetically related to cannabis and have similar pigments and oils. The treatment will be integrated into Nextleaf’s production of distillates for vapes, edibles, and beverages.
NextLeaf also worked with The University of British Columbia and the British Columbia Institute of Technology on a project to repurpose cannabis biomass after extraction. The firm discovered that burning hemp biomass creates ash that can be used as an ingredient to make cement, thus keeping metric tons of biomass out of landfills.
"We were adamant on finding an environmentally conscious way to put cannabis biomass waste used in our extraction process to good use, and the evidence suggests we've found it," said CEO Paul Pedersen in a statement.
In July, the firm expanded its investor base, with its shares started trading on the OTCQB Market. The move is expected to both boost liquidity and introduce the firm to a broader US institutional and retail investor audience.
In March, NextLeaf unveiled news that the US Patent and Trade Office has granted it a patent for its process of extraction, refinement and distillation of cannabinoids from marijuana and hemp.
It's the first publicly traded entity to be issued an extraction patent. In addition, NextLeaf announced that it has been issued a standard patent from IP Australia, the government agency that administers intellectual property rights. And there's more to come -- with 24 patents pending in the United States, Canada, Mexico, Colombia, Jamaica, Europe and Australia.
"Companies that secure unique intellectual property first have a competitive advantage," Pedersen said in an interview with Proactive, adding that cannabis processing and pharmaceutical applications are lucrative, as compared to others, such as genetics applications, etc.
What the boss says:
CEO Paul Pedersen commented: "Our strategy from day one was to be the absolute best at developing disruptive extraction technology and focus as a business, not worrying about growing or developing brands or retail, but to just focus on the underlying technology that goes from plant into product and being able to deploy that in a highly scalable way."