Nextleaf Labs has entered into a Cannabis Extraction Agreement with a well-known cannabis producer based in Ontario who operates a 10-acre greenhouse licensed for cannabis cultivation.
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 using OILS's patented and proprietary extraction technology," the team with the company explains. "The bulk distilled THC and CBD oils will be supplied to the wholesale market by Nextleaf Labs, with net proceeds of such sales expected to be shared by Nextleaf Labs and the Client. The initial term of the Agreement will end on the earlier of (a) 12 months, and (b) the date upon which 15 metric tons of biomass has been processed, and automatically renews thereafter for successive one year terms. Over the initial term, the Agreement has the potential to generate up to $16MM in gross revenue for Nextleaf Solutions, who receives the economic benefit of processing activities conducted by Nextleaf Labs pursuant to agreements between the companies."
"Our stakeholders have been eagerly awaiting the commercialization of Nextleaf Solutions' proprietary extraction technology. We are pleased Nextleaf Labs' first large cannabis extraction agreement is with such a strong cultivator, who has been an early industry leader producing exceptional quality product at a large scale," stated Nextleaf Solutions CFO, Charles Ackerman. "We believe we are delivering on the overall mission of building a fundamentally-sound Company that operates one of the most efficient, technology-driven cannabis oil refineries in Canada, and we look forward to taking the business into the next phase of growth," continued Ackerman.