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Nextleaf Solutions Awarded Patent in Emerging European Cannabis Markets

Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) ("Nextleaf", "OILS", or the "Company"), the world's most innovative cannabis extractor, announced today that it has been awarded a patent in Europe, vital to the low-cost production of cannabis distillate.

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Nextleaf has developed over 70 patents globally for the extraction, purification and delivery of cannabinoids

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"We are optimistic about the trend in Europe of governments following Canada's lead in the legalization of cannabis," said Paul Pedersen, CEO of Nextleaf Solutions. "We have validated our extraction and distillation technology here in Canada, the world's largest and most well regulated federally legal jurisdiction. Nextleaf's global IP strategy allows for speed to market by exporting our 'Made in Canada' technology into emerging cannabis markets," stated Pedersen. "When you look at the companies that own the most cannabis patents throughout Europe, you find Canopy Growth, GW Pharma, Pfizer, and Nextleaf Solutions."

According to a report by international cannabis research firm Brightfield Group, domestic cultivation and pressure on Europe's healthcare system to allow general practitioners to prescribe cannabis as medicine will result in a compound annual growth rate of 98% from 2020-2025. The Brightfield Group expects the entire European market to grow to over $3.1bn by 2025. The report, entitled "European Cannabis 2020," anticipates the UK, which legalized medical cannabis in 2018, to experience the largest cannabis medical market growth rate in Europe during that period.

This issued European patent pertains to a proprietary closed loop chilled solvent feed apparatus for post-extraction cannabinoid processing, and mirrors a patent previously granted by the United States Patent and Trademark Office and the Canadian Intellectual Property Office. In 2020, the Company validated patents in strategic European jurisdictions including, but not limited to: Germany; Italy; the UK; Spain; Portugal; Poland; and Denmark. Nextleaf's patents in emerging European cannabis markets reinforce the Company's vision of developing IP that improves CBD and THC oil economics globally through the production and standardization of cannabinoid-based products.

According to data from Prohibition Partners, medical cannabis imports to Germany grew 37% in 2020. The Prohibition Partners data also says Germany imported a record 3,264 kilos of cannabis in Q4 2020, bringing the yearly import total to 9,249 kilos.

In February 2021, plant-derived CBD was added as a legal ingredient in cosmetics by a key market regulator for trade in the European Union. The change was the result of the European Union's high court declaration in November 2020 that CBD derived from hemp was not a narcotic under an international drug treaty and would be subject to EU law on the free movement of goods among EU members. The demand for medical cannabis and CBD products continues to increase in Europe, and Nextleaf considers its European intellectual property strategy central to the Company's global aspirations.

"We know that medical cannabis acceptance in Europe will be a major catalyst to jump-start pharmaceutical participation because these jurisdictions collectively manufacture and export over 70% of all drugs and medicines consumed globally," said Pedersen. "We are starting to see the value of IP come to the forefront of the industry with the largest cannabis company in the world, Canopy Growth, launching a cannabis extraction patent infringement lawsuit against GW Pharma this past December."

On February 3, 2021 Jazz Pharmaceuticals ("Jazz") and GW Pharmaceuticals ("GW") entered into an agreement whereby Jazz would acquire GW for $7.2bn USD. A major reason for the transaction is GW's patent portfolio, which includes 57 issued patents in the United States.

Nextleaf is among the global leaders in intellectual property pertaining to the extraction, purification, and delivery of cannabinoids. Nextleaf owns 13 issued US patents and over 70 issued patents globally.

About Nextleaf®

Nextleaf is an innovative cannabis processor that owns one of the largest portfolios of US patents for the extraction, distillation, and delivery of cannabinoids. Through its wholly owned subsidiary Nextleaf Labs Ltd, a licensed processor, the Company is a low-cost producer of cannabis distillate and private label THC & CBD oils. Nextleaf's proprietary closed-loop automated extraction plant in Metro Vancouver has a design capacity to process 600 kilos of dried cannabis into oil per day. The Company owns 13 US patents and has been issued over 70 patents globally. Nextleaf is developing delivery technology through its Health Canada Research Licence with sensory evaluation of cannabis via human testing. The Company's proprietary RAPID Emulsion Technology by OILSâ„¢ powers differentiated ingestible cannabis products.

Nextleaf Solutions trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB Market in the United States, and L0MA on the Frankfurt Stock Exchange.

Follow OILS across social media platforms: Twitter, LinkedIn, Facebook, and Instagram.

www.nextleafsolutions.com

For more information please contact:
Jason McBride
604-283-2301 (ext. 219)
investors@nextleafsolutions.com

On behalf of the Board of Directors of the Company,

Paul Pedersen, CEO

Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's ability to capitalize on its IP portfolio, the Company's strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company's MD&A for the most recent fiscal period. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. The CSE has not reviewed or approved the contents of this press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/82206.

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