Taps Tropical Crop to Scale Coca Extract Output to 360,000 Litres by Year End

Power Leaves Taps Tropical Crop to Scale Coca Extract Output to 360,000 Litres by Year End

FULL DISCLOSURE: Canacom Group is long the equity of Power Leaves.

Power Leaves Holdings (CSE: NASA) has partnered with Colombian contract manufacturer Tropical Crop SAS to scale production of its decocainized coca extracts, a move aimed at turning a pipeline of more than 100 prospective customers into purchase orders.

Under the arrangement, Power Leaves keeps control of leaf procurement, extraction and decocainization at its Cohetando campus. It will ship concentrated extract to Tropical for automated blending, packaging and regulatory sign-off. Financial terms were not disclosed.

The draw is certification and capital. Tropical runs three facilities and already holds FDA food-manufacturing registration, INVIMA compliance and HACCP certification, which shortens the path through the quality audits large food and beverage buyers require. It also lets Power Leaves skip building its own packaging lines and quality systems.

The company is targeting annualised capacity of 360,000 litres by the end of 2026, up from 24,000 litres today, and 2 million litres by the end of 2027. That works out to roughly an 83-fold increase.

“Tropical gives us in a single step what would otherwise have taken years to build,” said CEO Pat McCutcheon. “This is the partnership that turns our pipeline into purchase orders.”

Power Leaves sells two products from the same leaf. Coca X is a flavour extract aimed at soft drinks, energy drinks and ready-to-drink coffee and tea, while Coca E is an aromatic concentrate for spirits and hard seltzers. Both carry a target price of $100 per litre based on supply agreements signed to date.

Several large counterparties have already completed diligence, including a U.S. flavour house that spent two years evaluating the product. The company expects initial commercial orders from major pipeline customers in the coming weeks and is pursuing a similar co-packing model in the U.S.

Power Leaves last traded at $0.08 on the CSE.

FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of Power Leaves. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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