Nextleaf Solutions Ltd (CSE:OILS) (OTCMKTS:OILFF) announced Thursday that Health Canada has granted its commercialization partner Nextleaf Labs Ltd a Research Licence under the Cannabis Act.
The newly granted licence allows Nextleaf Labs to conduct a number of research and development activities, including stability trials on the company's nanoemulsified water-soluble THC and CBD formulations, according to a statement.
"With a sub-10 minute onset time and no hangover symptoms, we are excited to continue to validate our intellectual property by scaling our cannabis-infused beverage technology from laboratory to commercial scale," said Paul Pedersen, CEO of Nextleaf Solutions.
The Research Licence is the second Health Canada licence granted to Nextleaf Labs, following a Standard Processing Licence granted in September 2019.
Under the Research Licence, Nextleaf Labs is permitted to conduct R&D on analytical investigations of cannabis and its derivatives, the extraction, refinement, and purification of compounds from cannabis and hemp, and formulation of infused cannabis products. Research Licence holders may also conduct human administration trials for sensory evaluation.
Nextleaf Labs licenses Nextleaf Solutions' intellectual property and infrastructure pursuant to a licensing agreement. Nextleaf Solutions announced in October 2019 it was consolidating Nextleaf Labs.
Standard patent by IP Australia granted
In related news, the company also announced that it has been issued a standard patent by IP Australia – the Australian Government agency that administers intellectual property (IP) rights – for its filtration cell used in the post-extraction processing of cannabinoids from cannabis and hemp.
The patent extends the Vancouver-based company's existing intellectual property portfolio, to cover its proprietary filtration cell that allows for the removal of undesirable compounds from crude cannabis oil extracts in less time, achieving more efficient throughput rates, and a highly desirable, impurity-free, refined concentrate.
"One of the biggest issues with infused products relates to taste. With crude extracts and less refined oils, the consumer experience is affected by inferior taste and smell due to the presence of fats and waxes," said Paul Pedersen, CEO of Nextleaf Solutions.
"We are able to solve those issues at scale with our chilled ethanol extraction and distillation processes, which is protected by 12 issued patents. We expect to double our patent portfolio in 2020, and continue to secure intellectual property around the extraction, distillation and formulation of cannabinoids."
The company's stock recently traded up 4.2% to C$0.37 a share in Canada and rose 3.6% to US$0.29 a share in New York.
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