VANCOUVER, BC
-- December 17, 2019 -- InvestorsHub NewsWire
-- Nextleaf Solutions Ltd. ("Nextleaf",
"OILS", or the "Company")
(CSE: OILS) (OTCQB: OILFF)
(FSE: L0MA), a Coquitlam-based company
developing intellectual property for the extraction and
purification of cannabinoids, is pleased to announce that it has
entered into a strategic agreement (the
"Agreement") with a British Columbia-based
cannabis processing equipment distribution company (the
"Licensee").
The Agreement permits the
Licensee, on a non-exclusive basis, to commercialize and distribute
certain intellectual property, specifically, three issued and
pending patents related to post-extraction processing equipment
("IP") developed by Nextleaf. OILS will provide
the Licensee with initial working capital and strategic support
during the indefinite term of the Agreement. OILS may terminate the
Agreement if the Licensee does not meet certain minimum annual
sales targets.
OILS will receive a royalty
equal to 20% of the Licensee's gross revenue from all sources (the
"Royalty") in exchange for, among other
consideration, the licensed IP. Based on the Licensee's current
product backlog and 2020 projections, OILS estimates the Royalty
could yield over $3,000,000 in royalty fees to Nextleaf
in the 2020 calendar year, with initial revenue expected to
commence in the immediate term.i
"We believe this is an
ideal partnership with a company whose management has a proven
track record of building one of the industry's largest cannabis
processing equipment distributors," stated Charles Ackerman,
Chief Financial Officer of Nextleaf. "This deal allows OILS to
continue its work to efficiently monetize its patent portfolio
globally. It also brings closer to its previously announced goal
of $5,000,000-$10,000,000 in gross revenue from IP
licensing alone in the next 12 months.ii We
believe IP licensing has the potential to represent up to 10-20% of
our gross annual revenue" continued
Ackerman.i
In addition to the
development and monetization of its IP portfolio, OILS continues to
focus on assisting Nextleaf Labs Ltd., a Health Canada licensed
standard processor, to reach full commercial production including
the production and sale of bulk CBD and THC oils. Nextleaf expects
to be in a position to announce additional commercial agreements
during the first calendar quarter of 2020.
About Nextleaf
Solutions
Nextleaf Solutions Ltd.
("OILS") is developing
disruptive intellectual property for the extraction and
distillation of cannabinoids. OILS owns a portfolio of 10
issued patents pertaining to industrial-scale production of
distilled CBD and THC oils, the key ingredients used in the
manufacturing of standardized cannabinoid based products. OILS
commercializes its IP portfolio through IP licensing, B2B
processing, and supplying THC and CBD oils to qualified Canadian
and international partners through Nextleaf Labs Ltd., a Health
Canada licensed standard processor.
Nextleaf Solutions trades
as OILS on the Canadian Securities
Exchange, OILFF on the OTCQB Market
in the United States,
and L0MA on the Frankfurt Stock
Exchange.
Follow OILS across social
media platforms: Twitter, LinkedIn, Facebook, and Instagram.
www.nextleafsolutions.com
On behalf of the Board
of Directors of the Company,
Paul Pedersen,
CEO
CAUTIONARY
STATEMENT
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 the Licensee's current backlog and
projections for the 2020 calendar year, the Royalty expected to be
received by the Company during the 2020 calendar year, the
Company's ability to capitalize on its IP portfolio and in
jurisdictions outside of Canada, the Company's expected gross
revenue from IP licensing during the 2020 calendar year, the
percentage of the Company's revenue expected to be received from IP
licensing, the Company's expectations regarding the entering into
of new commercial agreements in the first quarter of 2020, 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.
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i This estimate is based on
management's current views, strategies, expectations, assumptions
and forecasts, and has been calculated using accounting policies
that are generally consistent with the Company's current accounting
policies. The estimate is derived from the expected
gross revenues from the Agreement, representations from the
Licensee regarding current order backlog and projections, and the
achievement of the Licensee's projected product sales forecasts.
This estimate is considered a financial outlook under applicable
securities laws. The estimate and any other financial outlooks or
future-oriented financial information included herein has been
approved by management of the Company as of the date hereof. Such
financial outlooks or future-oriented financial information are
provided for the purposes of presenting information about
management's current expectations and goals relating to the future
business of OILS. Readers are cautioned that actual results may
vary materially as a result of a number of risks, uncertainties,
and other factors, many of which are beyond the Company's control.
See "Cautionary Statement".
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ii Please see the Company's
November 20, 2019 press release: "Nextleaf Solutions Granted Two
Patents for Industrial-Scale Extraction of CBD and
THC."
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SOURCE Nextleaf Solutions
Ltd
Related
Links
https://www.nextleafsolutions.com