The technology, based around a Nano and Micro Emulsification process, utilizes food-grade emulsifiers already approved by Health Canada. These water-soluble cannabinoids are shelf stable, resulting in no constituent separation, and boast a rapid onset time.
“This nanotechnolgy increases onset time from over 90 minutes to less than 10 minutes when consuming cannabinoids in a beverage. We believe this represents a quantum leap for the industry, as fast onset is a pre-requisite for mass market acceptance of THC and CBD infused drinks,” Nextleaf CEO Paul Pedersen said in a statement.
Under the agreement, Nextleaf will acquire the processing methodology and ingredient formulation from a private company led by a team with extensive experience in emulsifying hydrophobic molecules into various matrixes.
The developers combine expert chemical engineering with tenured experience from one of the largest Canadian dairy product manufacturers.
“This is a cannabis-specific innovation built on proven and validated food and beverage technology. The technology and formulation allow for versatile application into hot or cold liquids, semi-solid, or solid mediums. Homogeneity is crucial for a reliable consumer experience so that every bite or sip delivers a consistent amount of cannabinoids,” Nextleaf Chief Technology Officer Ryan Ko stated.
Use of Technology
Nextleaf said that the combination of the newly acquired water-soluble formulation with its extraction, purification and refinement system will give the company “a superior advantage to” its commercialization partners as products will represent cleaner ingredient profiles, reducing the use of additives for flavor masking.
The company has granted an exclusive license to BC-based cannabis-infused beverages firm BevCanna Enterprises (CSE: BEV) for the use of intellectual property related to water-soluble cannabinoids for the development and sale of BevCanna products. Nextleaf also has a supply agreement with BevCanna to provide cannabinoids for the production of their products.
As consumer packaged goods companies enter the cannabis infused product landscape, Nextleaf believes that the scalability of its patented technology and ability to standardize ingredients is what sets it apart.
Pedersen noted that “as the industry evolves, there’s going to be increased demand for more sophisticated processing solutions to formulate standardized products.”
As part of the deal, Nextleaf will compensate the developer for the intellectual property upon each of two milestones being met.
For the first milestone, which has now been met, the company will pay the developer $100,000 in cash and issue common shares having an aggregate value of $100,000 through the issuance of 196,078 shares at a price of $0.51 per share.
Upon the developer meeting the second milestone, Nextleaf will pay the developer an additional $65,000 and issue additional shares having an aggregate value of $300,000, with the price per share and number of shares being determined once the second milestone has been met.