Nextleaf Solutions (OILS.C) subsidiary Nextleaf Labs inked an extraction agreement with Natural MedCo, (NMC) a subsidiary of Eve & Co (EVE.V) today, according to a press release.
NMC will be providing biomass for processing into distilling THC and CBD oils at Nextleaf’s Vancouver extraction plant. Nextleaf Labs will be selling its bulk THC and CBD oils through its commercial partners program with both Nextleaf Labs and NMC sharing the proceeds. The term of the agreement will lapse after a year, or whenever 5,000 kilograms of cannabis biomass has been processed. It automatically renews after a year.
“We are excited for the opportunity to support the launch of Eve & Co’s female-focussed cannabis 2.0 product lines in Canada. Given our partner’s European Union certificate of Good Manufacturing Practise Compliance, and their ability to distribute into Germany, we expect to have opportunities to supply global markets with bulk THC and CBD oils and differentiated products,” said Charles Ackerman, CFO for Nextleaf Solutions.
Eve & Co, operating through NMC, holds cultivation and processing licenses through Canada’s Cannabis Act to produce and sell cannabis products, including dried cannabis, cannabis plants and oil extraction, and has received its good manufacturing practices certification to do the same in the European Union. They’re also the first female-founded licensed producer of medicinal cannabis, and received their cultivation license in Canada in 2016.
Based in Strathroy, Ontario, NMC has over one million square foot production and distribution through both provincial and global adult-use markets.
“We are excited about the opportunity to work with Nextleaf, which is such a ground-breaking company, and the opportunities our partnership will bring. Alliance with this group adds another revenue stream, which aligns well with our 2.0 female-focussed product line and exports to the European Union,” said Melinda Rombouts, CEO and president of Eve & Co.
Nextleaf Solutions’ intellectual property investments along with their fixed asset base provide a platform to scale, and gives them a competitive advantage in terms of supplying low-cost distillate produced at their oil refinery in British Columbia.