Nextleaf Solutions Ltd (OTCMKTS: OILFF) has provided an update regarding its Speciality Molecules division, particularly about its patented proprietary manufacturing route of D9-tetrahydrocannabinol acetate, colloquially dubbed THC-O.
Nextleaf started THC-O production after receiving a license
In preparation for marketing, Nextleaf has begun manufacturing THC-O under its Health Canada Research Licence. Through independent sample analysis, Nextleaf has approved the THC-O it produces during its production process.
The company understands that because THC-O doesn’t meet the “Total THC” criteria stated in the Excise Act of 2001, which is the same as the meaning found in the Cannabis Act, it is not liable to excise tax.
The percentage of residual delta-9-THC contained determines how much excise tax is charged on licensed cannabis extracts in Canada. Excise tax, which applies to some marijuana products made with delta-9-THC and costs more than 40% of the tax paid to regional government wholesalers and medicinal marijuana distributors, is a major problem in the market.
Nextleaf believes that THC-O has the potential to upend the cannabis industry by positioning it as a duty-free excise option to delta-9-THC. Under the terms of Nextleaf”s Health Canada cannabis licenses, Nextleaf aims to market the component as a therapeutic treatment sold to provincial wholesalers and medical marijuana sales partners.
Paul Pedersen, the company’s CEO, stated that they are thrilled to take the lead worldwide on the advancement of tax-free THC-O product offerings produced under Health Canada’s regulations. He added that the company has continued to grow due to Nextleaf’s track record for producing standardized cannabinoid-based products and supplying Glacial Gold labeled products via provincial state distribution channels and dispensaries from countrywide.
THC-O effects persist longer and have better onset
According to anecdotal evidence, relative to delta-9-THC, the effects of THC-O compounds are psychedelic-like, persist longer, and have a better gradual start.
A much stronger THC analog may now be standardized thanks to Nextleaf’s unique manufacturing technology. The company holds Canadian and US patents, plus the US patent for the less effective technique of producing THC-O. In addition, under the terms of the Canada Health License, the company produces cannabinoid-based compositions for human research.