Westleaf Cannabis Inc. (CNW Group/Westleaf Inc.)

Westleaf Closes Exclusive Partnership with an Industry Leader in Cannabis Derivative Product Manufacturing and Formulation

Westleaf Inc. announced that its subsidiary, Westleaf Labs LP, has entered into a definitive agreement with a subsidiary of Xabis Inc., where under Xabis will provide technical expertise to the Company’s Calgary-based extraction, processing and manufacturing facility, which is on schedule to complete construction this month. The agreement will provide Westleaf with exclusive access to Xabis’s extraction, processing, manufacturing and product development expertise in the Canadian market.

“This partnership is another part of the execution on Westleaf’s strategy of becoming a significant vertically integrated player in the Canadian cannabis industry,” said Scott Hurd, President and CEO of Westleaf. “We believe a diversified offering of derivative cannabis products will account for a major shift in consumer demand once legal. We are positioning to formulate unique, high quality cannabis derivative products and have partnered with an industry leader to complement our expertise in building and running these types of facilities. We are also excited to start offering contract manufacturing services to third parties.”


  • Tapping into Industry Leading Expertise – Xabis is an industry leader in design, construction and management of cannabis extraction and manufacturing facilities, as well as product development. Xabis has worked in nine US states and has developed more than 200 cannabis derivative product SKUs.
  • Focus on Derivative Products – Once fully complete, the Plant will be capable of producing the full suite of new derivative product lines in preparation of Health Canada’s legalization of derivative and consumable products (cannabis oils, gel capsules, vape cartridges, edibles, topicals and other products) expected to occur later this year.
  • Scalability The Plant is an approximately 60,000 square foot complex with Phase I (~15,000 sq. ft.) to include R&D, processing, extraction, manufacturing and order fulfillment. Phase I construction is on schedule for completion this month. The Plant has an additional 45,000 square feet available for expansion.
  • Multiple Revenue Streams The Plant is designed to produce a diversified offering of cannabis derivative products under Westleaf’s brand portfolio. Additionally, Westleaf plans to offer white labeling services to produce finished products for third parties and contract manufacturing services for raw extract and distillation.
  • Developing Products for the Global Market – The Plant is being built to EU GMP specifications to ensure compliance for export capabilities. Strategically located in Calgary, the facility is not only in the largest retail market in the prairies, but also has easy access to transportation services to the rest of Canada and to global markets.

Xabis is a Colorado-based cannabis processing company which provides turnkey operations for companies in the mid-stream of the cannabis industry. With more than 75 years of collective experience, Xabis’s team of PhDs and scientists manage the most technically difficult processes in the cannabis life-cycle, all aspects of the extraction and manufacturing of cannabis infused products.

“We are entirely focused on the plant-to-product portion of the value chain,” explains Dale Zink, CEO of Xabis. “From the end of the grow to the final processed product shipping out to the retail store or dispensary, we apply our expertise to help companies create profitable processes and systems.” Zink leads a group of PhDs with extensive experience in biotechnology and chemical engineering, including experience in the extraction industry, the pharmaceutical industry and academia.

The move by Xabis into the Canadian market under an exclusive relationship with Westleaf is the company’s first foray into the largest single federally legalized recreational market. Xabis has designed, built, and operated facilities in nine U.S. states where medical or recreational cannabis has been legalized.  

As partial consideration for services provided to Westleaf, Xabis will be entitled to earn equity-based compensation of up to $1,000,000 worth of common shares of Westleaf (“Common Shares“), payable in three tranches over a three year period. The pricing of the Westleaf common shares to be issued under each tranche will be determined by dividing the equivalent dollar amount of the Common Shares to be received by Xabis under the applicable tranche by the five day volume weighted average trading price of the Common Shares determined on the trading day immediately preceding the date on which the Common Shares are to be issued.

Xabis brings scientific discipline, sound business principles, and professionalism to the cannabis industry by delivering turnkey processing operations for the commercial scale transformation of cannabis from plant to product. Xabis is led by seasoned business professionals and scientific experts, including some of the industry’s leading chemical and biological PhDs and engineers. For more information, please visit www.Xabisinc.com   

Westleaf is a vertically integrated cannabis company focused on innovative retail experiences and engaging cannabis brands as well as cultivation, production and extraction of cannabis products. Westleaf is rolling out a national retail footprint for its retail concept Prairie Records, with stores planned for British Columbia, Alberta, Saskatchewan and potentially Manitoba and Ontario. The retail concept leverages the instinctual tie between recreational cannabis and music and redefines the cannabis purchasing experience. The Company also has two significant production facilities under construction and scheduled for completion in 2019. For more information, please visit www.westleaf.com or www.prairierecords.ca.