Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) expects to build its client base and strike more commercial orders in 2021, the cannabis processor told investors, as it reported record unaudited revenue in its first quarter to end-December 2020.
The period was the company’s first full three months of generating processing revenue and the figure came in at C$1.257 million in the quarter – a 359% increase compared to the same period a year earlier.
READ: Nextleaf Solutions expects its patent-rich portfolio to pay off as Jazz Pharmaceuticals acquires GW Pharmaceuticals
“During the quarter, Nextleaf continued to add to its client roster, signing cannabis extraction agreements with three Canadian licensed producers which operate cannabis production and distribution facilities across Canada,” the company said.
Updating on corporate activity, Nextleaf noted that on September 19 last year, the Mexican Senate approved a comprehensive adult-use marijuana legalization bill, which will make Mexico the third country to legalize adult-use cannabis. The country’s supreme court recently set a deadline of April 30 this year for the law to be passed, the company noted.
Nextleaf owns the second-largest cannabis patent portfolio in Mexico.
The quarter also saw CBD gummies powered by the firm’s high purity CBD distillate launched at cannabis retailers in British Columbia through the company’s commercial partners program.
Nextleaf also highlighted that the completion of production of its first commercial batch of rapid THC oil drops using its patent-pending rapid emulsification technology.
“We’ve built our entire business to deliver efficient value to our clients through innovation. Furthermore, we’ve structured many of our supply agreements to leverage a split revenue model, providing a hedge on commodity risk – one of the largest enterprise risks faced by all cannabis companies,” said Nextleaf Solutions chief financial officer Charles Ackerman in the statement.
“As the overall consumer market continues to grow steadily with the rollout of retail stores and broader product offerings, we expect to see the industry work through the market oversupply,” he added. “We believe that ultimately, the companies that continue to innovate and drive further value for clients, like Nextleaf, will be the long term winners in this industry.”
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Story by ProactiveInvestors
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