Nextleaf Solutions Ltd (CSE:OILS, OTCQB:OILFF) told investors it has completed its initial shipment of Glacial Gold vapes and distilled oils to the Ontario Cannabis Store (OCS), as it also provided an update on its cannabis sales in British Columbia (BC). Wholly owned by the Province of Ontario, Nextleaf noted that the OCS is the sole distributor in the province and all Ontario cannabis retailers must purchase their inventory through the OCS. Vapes and distilled oils under the Company’s award-winning prohibition-era brand, Glacial Gold will be available at retail stores across Ontario and at ocs.ca in early May 2022, it added. “Shipping our initial order to the OCS is a major milestone as we look forward to growing our relationship with the provincial distributor by delighting consumers in Ontario the way we have delighted consumers in BC with quality products at accessible price points,” Nextleaf CEO and co-founder Paul Pedersen said in a statement. READ: Nextleaf awarded US patent for technology that maximizes cannabinoid yield and reduces waste In British Columbia, Nextleaf said its Glacial Gold brand continues to see strong consumer demand and sell-through during its initial six months in the market. Metrics for the quarter ended March 31, 2022, include:
Glacial Gold Anytime 1:1 is the #1 selling CBD forward vape SKU Glacial Gold is the #2 brand in CBD & balanced oils by revenue Glacial Gold is the #6 brand in 1-gram vapes by revenue 44% increase in market share quarter-over-quarter in the oil category 14% increase in market share quarter-over-quarter in the vape category Glacial Gold has seven SKUs (stock-keeping units) in the 1-gram vape sub-category, second amongst all brands
The company said Glacial Gold continues to outsell the largest brands in Canada in the key categories of vapes and CBD oils. During 1Q 2022, it said it sold more vapes and oils in BC than Canopy Growth, Tilray Brands, Aurora Cannabis, The Valens Company (TSX:VLNS, OTCQX:VLNCF), Medipharm Labs, Sundial Growers, and TerrAscend. “Nextleaf’s patented technology has enabled Glacial Gold to outperform some of the largest regulated cannabis companies in the world in vapes and CBD oils,” added Pedersen. Nextleaf also announced that it has issued an aggregate of 866,741 common shares at a deemed price of $0.135 per share to scientific and technical consultants of the company, as compensation for services provided. Additionally, it has awarded non-executive employees of the company options to purchase up to 70,000 common shares under its stock option plan, exercisable at $0.175 per share. It also issued 500,000 warrants to purchase common shares to the holder of the convertible note issued on March 31, 2021. The warrants were issued as consideration for revision of the terms of the note, and are exercisable at $0.162 per share for 36 months from the date of issuance. Nextleaf owns one of the largest collections of US patents among all cannabis companies, as well as a Greater Vancouver-based extraction plant producing low-cost cannabinoid ingredients under its Health Canada licenses. The company’s multi-patented automated extraction plant up-cycles aged cannabis flower and biomass, which would otherwise be destroyed, into high-purity cannabinoid ingredients at an industrial scale. Nextleaf’s intellectual property includes 18 US patents and over 95 issued patents globally on cannabinoid processing including extraction, distillation, and acetylation. With this latest issued patent, the company said it has a success rate above 95% for pending applications to issued patents. The average success rate of pending to issued patents in the pharmaceutical industry is 42.8%. Contact the author at stephen.gunnion@proactiveinvestors.com