Nextleaf Labs signs cannabis extraction agreement with cannabis cultivator
The agreement has the potential to generate up to $16 million in gross revenue
VANCOUVER — Vancouver-based cannabis extractor Nextleaf Solutions Ltd. announced on April 2 that it has entered into a cannabis extraction agreement with a well-known cannabis producer based in Ontario that operates a 10-acre greenhouse.
Nextleaf says the client will provide cannabis biomass which it will process into refined and distilled THC and CBD oils using its patented and proprietary extraction technology. The bulk distilled THC and CBD oils will be supplied to the wholesale market, with net proceeds of such sales expected to be shared by Nextleaf and the client.
The initial term of the agreement will end either after 12 months or 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, Nextleaf says the agreement has the potential to generate up to $16 million in gross revenue.
“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,” said Nextleaf Solutions CFO, Charles Ackerman, in a prepared statement. “We believe we are delivering on the overall mission of building a fundamentally-sound vompany 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.”