NextLeaf Solutions Ltd (CSE:OILS) has bolstered its intellectual property (IP) portfolio by buying a US patent-pending hydrocarbon extraction process and award-winning formulation to make a product called "shatter'" -- a cannabis concentrate.
The Vancouver-based group is buying the tech from a third party and will issue 444,444 common shares at $0.45 each, making the transaction worth around $200,000.
Shatter is set to set to become legal across Canada on October 17 this year, while a variety of THC and CBD based concentrates will start to become available for sale to medical patients and adult-use consumers across Canada by December.
Meanwhile, the patent pending butane hash oil, or BHO extraction process, produces a broad spectrum cannabis concentrate with a rich terpene profile, unlike any product currently available on the Canadian legal cannabis market, said the firm.
"Nextleaf is committed to acquiring and developing market-validated intellectual property (IP) pertaining to formulations and methodology to produce unique cannabis oils and concentrates," said CEO Paul Pedersen.
"By acquiring this patent pending BHO extraction process and award-winning shatter formulation, Nextleaf adds valuable IP to its portfolio of innovative processes and formulations for THC and CBD based products. This acquisition allows Nextleaf to diversify its intellectual property portfolio, as consumers in legal recreational and medical states consistently illustrate increased consumption of hydrocarbon concentrates."
Pederson added: "We believe companies that can successfully develop and protect valuable intellectual property will benefit substantially in the long-term."
Final steps taken
Also in today's statement, the firm said a site evidence package, as now required by Health Canada, has been filmed at its built-out extraction and processing facility in Greater Vancouver, British Columbia. This is now needed as a final step towards licensing.
Last month, the group closed a previously announced non-brokered private placement of $4 million.
The company had increased the size of the placement due to investor demand. Four insiders of the company subscribed for a total of 1,819,500 units, representing $727,800 of the gross proceeds from the private placement.
NextLeaf has a patented process for the commercial scale production of cannabinoid distillate, the precursor to every cannabis-infused product. The company’s technology allows for low-quality, dried cannabis biomass to be processed into a high-purity distilled oil.
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