Cannabis company Nextleaf Solutions Ltd. OILS OILFF (FSE: L0MA) announced business and financial results for its first quarter fiscal 2022 period ended December 31, 2021.
Q1 2022 Business Highlights
- The company earned processing revenues from cannabis concentrate and branded product sales of approximately $1.15 million, with a gross margin of approximately 30%.
- Nextleaf became a top-10 supplier of cannabis oils and vapes in British Columbia.
- Established distribution of Glacial Gold branded products into three provincial adult-use markets and nationally for medical cannabis patients.
- Established a commercial supply partnership with a Nasdaq-listed global cannabis company, with Nextleaf supplying THC ingredients to power the partner's THC vape cartridges distributed nationally under their brands.
"Nextleaf's revenue diversity continues to provide a more robust base,” Nextleaf CFO Charles Ackerman, said. “With the increasing number of provincial markets and distribution points, our Company is well positioned to realize stable and repeatable growth. We are starting to see the positive trend in gross margin at these current revenue levels, which we believe are very scalable - with additional opportunities to realize further efficiencies as we continue to increase utilization of our existing IP and asset base."
Key Milestones During Q1 2022
- In October 2021, Nextleaf was authorized by the Saskatchewan Liquor and Gaming Authority to distribute cannabis products in Saskatchewan. In December 2021, the company launched Glacial Gold vapes and oils at cannabis retailers across Saskatchewan through National Cannabis Distribution Inc.
- Nextleaf entered into a distribution agreement with Medicibis, a Québec-based cannabis processor and distributor, for national distribution of Glacial Gold products through Mendo's national medical cannabis sales platform.
- In November 2021, the company received acceptance of its application for a Dealer's Licence, now formally under review by Health Canada, which is poised to allow it to conduct a variety of activities relating to psilocybin and psilocin including R&D, IP development, production of base substance materials, laboratory analysis, as well as the sale and distribution of the substances to authorized individuals, including researchers and for its use in clinical trials.
- The United States Patent and Trademark Office granted Nextleaf a U.S. patent pertaining to a novel process for acetylating Cannabigerol.
- In December 2021, Nextleaf released the most potent ingestible CBD product in Canada, with Glacial Gold Distilled CBD 200 Oil available nationally to medical patients through Mendo and for adult-use consumers through provincial distributors.
Key Milestones Subsequent To Q1 2022
- Received approval from the Ontario Cannabis Store to list Glacial Gold branded cannabis products in Ontario.
- Approved as a vendor by the Nova Scotia Liquor Corporation and began supplying the Nova Scotia market with Glacial Gold CBD and THC products in January 2022. Glacial Gold vapes and distilled oils are now available across Nova Scotia.
- Launched two new vape flavours - Sunshine Punch and Sparkling Grape - with the B.C. provincial distributor quickly selling out the new Glacial Gold branded Anytime CBD and Session THC vapes.
"Cannabis retailers and consumers have quickly made Glacial Gold a top-10 selling brand of cannabis oils and vapes in British Columbia," Paul Pedersen, the company’s CEO, said. “With Glacial Gold winning market share in key categories, coast-to-coast distribution of our branded products, and continued growth in our B2B ingredient supply business, Nextleaf is well positioned to deliver strong fundamentals as we scale the utilization of our oil refinery."
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