Nextleaf Advances Capex-Light Model with New Micro-Processing Site Licence, Supporting Revenue Growth and Margin Expansion (CSE:OILS) (OTCQB:OILFF)

Scaling Infrastructure with Capital Discipline

Nextleaf Distribution, a 2,500 sq. ft. facility located near the Company’s primary processing site in Coquitlam, British Columbia, is now licensed to conduct select activities under Health Canada’s micro-processing framework.

This licensing structure enables capacity expansion with minimal capex, allowing the Company to scale their domestic and export-ready operations while maintaining quality oversight, resource utilization, and operational efficiency. The facility is expected to support packaging, distribution, and select manufacturing functions.

Focused Operating Model Driving Margin Expansion

Nextleaf’s asset light operating model leverages high-margin activities in the value-driven segment of the supply chain:

• Scalable Extraction & Distillation Technology: Globally patented, automated, closed-loop system achieving industry leading throughput and economics.

• Formulation & API Development: Standardized cannabinoid inputs for therapeutic, derivative products and consumer packaged goods.

• Brand Portfolio: Glacial Gold, Yard Cannabis, and High Plains capturing a range of segments, channels and markets.

• Commercial Partners Program: Bulk ingredients, toll processing, and white label manufacturing.

The addition of a second licensed site enables greater specialization across facilities, supporting the Company’s continued capacity utilization, reduced unit costs, and the growth of a higher-margin product mix.

Management Commentary

“The issuance of our micro-processing licence is a meaningful step in scaling our platform with discipline while maintaining a focus on being a total quality producer,” said Vipin Vikraman, VP Operations of Nextleaf Solutions.

“The additional licensed space allows us to streamline aspects of fulfilment and distribution and supports greater agility throughout the product lifecycle. This expansion aligns with our focus on total quality oversight while building an operational model that is efficient and aligned with long-term margin expansion.” Shares Vikraman.

Strategic Outlook

The addition of Nextleaf Distribution as a licensed micro-processing site under the Company’s asset-light model, is expected to:

• Increase operational flexibility and agility, accelerating speed-to-market and responding quickly to consumer trends

• Support international brand expansion without compromising on domestic fulfilment

• Enable scalable growth through continued capital discipline, while maximizing capacity utilization

This milestone signals Nextleaf’s continued evolution into a globally scalable, sustainably profitable, export-ready platform for cannabinoid-based consumer products and ingredients.

Share Issuance

As part of the Company’s compensation and retention strategy, Nextleaf will issue 166,667 common shares at a price per share $0.06 for aggregate proceeds of $10,000. This is to align employee interests with long-term shareholder value.

About Nextleaf Solutions Ltd.

Nextleaf® is an innovation-driven life sciences company and licensed cannabis processor with a portfolio of consumer brands, market-validated cannabis derivative products, and high-potency bulk ingredients. Nextleaf’s multi-patented, automated extraction and distillation technology sets the standard for processing cannabis at scale.

The Company’s scalable, asset-light platform is built on intellectual property, patented technology and API, enabling total-quality oversight in the development and commercialization of differentiated, value-driven, cannabinoid-based products for domestic and international markets.

Nextleaf’s portfolio includes 75+ global patents for the extraction and refinement of cannabinoid-based ingredients, alongside category-leading flagship brand Glacial Gold, High Plains Cannabis, and Yard Cannabis. The Company maintains an average of 35+ active SKU’s across 5 categories of consumption.

On behalf of the Board of Directors of the Company, 
Emma Andrews, CEO 

Contact: investors@nextleafsolutions.com 

Follow Nextleaf Solutions on LinkedIn 

Learn More: www.nextleafsolutions.com

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

Disclaimers and Disclosure Statements: 

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding the Company’s anticipated delivery of its products to provincial markets across Canada and those regarding 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 Canadian Securities Exchange has not reviewed or approved the contents of this press release.