Nextleaf Solutions Ltd. (CSE: OILS) (OTC: OILFF) has entered into an agreement to acquire a U.S. patent pending hydrocarbon extraction process and formulation for a cannabis concentrate also known as shatter.
Nextleaf will acquire the process and formulation from an arms’ length third party under an asset purchase agreement. The company will issue 444,444 common shares at a deemed price of $0.45 per share. The shares issued will be subject to a four month hold period pursuant to applicable securities laws.
The cannabis concentrate is set to become legal across Canada on October 17, 2019.
Extraction Process and Formulation
The unique patent pending butane hash oil, or “BHO”, extraction process and formulation produces a cannabis concentrate with a rich terpene profile, unlike any product currently available on the Canadian legal cannabis market, according to the company.
The chemical selectivity of the solvent mixture, coupled with the specific processing techniques and operating parameters, efficiently extracts terpenes and cannabinoids from cannabis flower to produce a full-flavor concentrate void of undesirable waxes and pigments.
On June 14, Health Canada released updated regulations for the production and sale of a variety of THC and CBD based concentrates and derivatives. These consumer products will start to be available for sale to medical patients and adult-use consumers across Canada by December 2019.
Nextleaf Developing IP Portfolio
The acquisition of the BHO extraction process and shatter formulation follows Nextleaf recently being issued multiple patents for extraction technology the company had previously acquired. The United States Patent and Trademark Office issued a patent to Nextleaf pertaining to the company’s process of extraction, refinement, and distillation of cannabinoids from cannabis biomass.
“Nextleaf is committed to acquiring and developing market-validated intellectual property (“IP”) pertaining to formulations and methodology to produce unique cannabis oils and concentrates. 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,” Nextleaf CEO Paul Pedersen stated.
Nextleaf’s portfolio of three issued and 24 pending patents – including the newly acquired patent pending BHO process – are part of its overall strategy to develop and protect IP pertaining to the production of innovative cannabinoid-based products geared towards both medical cannabis patients and adult-use consumers.
“We believe companies that can successfully develop and protect valuable intellectual property will benefit substantially in the long-term,” Pedersen added.
With concentrates legal in Canada later this year, Nextleaf plans to commercialize its IP portfolio by providing B2B processing services to licensed cultivators and supplying cannabis oils and concentrates to qualified Canadian and international partners under the client’s own brands.