The Agreement is for processing 10 metric tons of cannabis biomass into refined and distilled oils, enabling growth of B2B supply program.
VANCOUVER, April 13, 2020 /PRNewswire/ - Nextleaf Solutions Ltd. ("Nextleaf", "OILS", or the "Company") (CSE: OILS) (OTCQB: OILFF), Canada's most innovative cannabis extractor, is pleased to announce that Nextleaf Labs Ltd. ("Nextleaf Labs"), a Health Canada licensed standard processor of which the acquisition by OILS is pending, has entered into a Cannabis Extraction Agreement (the "Agreement") with an early pioneer in legal cannabis production in Atlantic Canada, and one of the strongest selling brands in the region (the "Client").
Cannabis Extraction Agreement
Pursuant to the Agreement, the Client will provide cannabis biomass which Nextleaf Labs will process into refined and distilled THC and CBD oils (the "Finished Product") using Nextleaf's patented extraction and purification platform. Nextleaf Labs will retain a portion of the Finished Product, which will then be supplied to the wholesale market. The initial term of the Agreement will end on the earlier of (a) 12 months, and (b) the date upon which 10 metric tons of biomass has been processed. Nextleaf Solutions will receive economic benefit of processing activities conducted by Nextleaf Labs pursuant to agreements between the companies.
"We are very pleased to be working with one of the leading cannabis brands in Atlantic Canada, built on consistent high-quality products that consumers trust," stated Nextleaf CFO, Charles Ackerman. "Having built what we believe to be the most efficient cannabis oil refinery in Canada, Nextleaf looks forward to providing economical processing solutions for our clients from coast to coast" continued Ackerman.
OILS is Canada's most innovative cannabis extractor, developing technology for extracting and distilling THC and CBD oils. Nextleaf's industrial-scale extraction plant in Greater Vancouver, BC has a design capacity to process 600 kg per day of dried cannabis biomass into refined oils. The Company owns a portfolio of 21 issued patents and over 50 pending patents for the extraction, purification, and formulation of cannabinoids. Nextleaf Solutions commercializes its patent portfolio through IP licensing, and supplying THC and CBD oils through Nextleaf Labs, a Health Canada licensed standard processor.
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.
For further information, please contact:
604-283-2301 (ext. 219)
On behalf of the Board of Directors of OILS,
Paul Pedersen, CEO
Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding expected revenues resulting from the Agreement over the term, the Company's ability to capitalize on its IP portfolio, and 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 CSE has not reviewed, approved or disapproved the contents of this press release.
SOURCE Nextleaf Solutions Ltd.