Nextleaf launches Specialty Molecules Division to develop and commercialize novel psychoactive compounds

Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) has announced the launch of a Specialty Molecules Division to focus on the development and commercialization of novel psychoactive compounds. The company said the division is supported by its existing intellectual property (IP) portfolio, including the manufacturing of CBD-O-acetate and the recently announced US patent for the synthesis of THC-O-acetate. "The purpose of this new division is to leverage Nextleaf's existing intellectual property and delivery technology to develop IP-protected therapeutic products from novel molecules," said Nextleaf CEO Paul Pedersen in a statement. READ: Nextleaf completes wholesale orders, builds patent portfolio and scales vape cartridge manufacturing line "The commercial opportunity for our Speciality Molecules Division is to partner with larger organizations looking for differentiation by leveraging Nextleaf's intellectual property and Metro Vancouver-based licensed innovation lab and extraction plant to manufacture specialty molecules under Nextleaf's Health Canada licenses,” Pedersen added. He continued: “We anticipate our Specialty Molecules Division will play a major role in long-term value creation thanks to the disruptive nature of our IP, particularly as it relates to the acetylation of cannabinoids.” Nextleaf noted that the cannabis industry has seen an increased focus on novel cannabinoid-based products with wellness and therapeutic applications, and investment from large pharmaceutical and CPG companies. An example is the recent $221 million investment by British American Tobacco in Canadian cannabis producer Organigram. Nextleaf said it expects to announce a future research & development and innovation agreement with a large strategic partner operating in the cannabis or pharmaceutical space. The company said the initial focus of the Specialty Molecules Division is commercializing more complex cannabinoid-based treatments that may provide a therapeutic alternative to opioid-based medications. The company currently holds the prerequisite licensing necessary under the Cannabis Act to commercialize THC-O-acetate in Canada. THC-O-Acetate Nextleaf said it intends to develop therapeutic products from its IP pertaining to the acetylation of cannabinoids and expects to release adult-use products with THC-O-acetate, which to the best of the company's knowledge has never been sold under a legal framework. The company said it believes a THC-derived product produced with its patented acetylation process may hold significant potential as a therapeutic due to anecdotal reports of THC-O-acetate having a more gradual onset, longer-lasting effects, and altered psychoactive effects, as compared to Delta-9-THC. The reported enhanced potency may also have the potential for reducing the cost per dose and the amount of active ingredient in a formulation to obtain the same level of effect compared to Delta-9-THC. Nextleaf said its US and Canadian patents describe a process of acetylating THC by refluxing naturally derived THC distillate in the presence of a single reactant, with THC-O-acetate the product of the reaction. Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham