Next Green Wave Holdings Inc. and Intrexon Corporation announced they have entered into a strategic licensing agreement to utilize Intrexon's Botticelli next generation plant propagation platform to enable rapid production of Next Green Wave's proprietary cannabis cultivars for the California market. The collaborative work conducted at Next Green Wave's facilities will also accelerate its vision of becoming a world-class nursery. The collaboration between the companies will be two-staged: An optimization phase in which Intrexon will calibrate Intrexon's Botticelli technology to Next Green Wave's specific cannabis cultivars and; A production phase in which Next Green Wave may utilize the technology in: the production of cannabis plantlets for its downstream products and the sale of plantlets to third party producers in California. Intrexon will be entitled to royalties on Next Green Wave's own plantlet usage and the parties will share equally the revenues from third party sales. Intrexon's Botticelli platform is an advanced tissue culture technology designed to enable efficient propagation of plants while maintaining genetic purity and product performance. When applied to cannabis, Botticelli TM offers potential for a sustainable, scalable, and more economical solution than conventional clones. In the U.S. market, legal cannabis revenue is projected to exceed $23 billion by 2022, with California representing around a third of that market. Current cannabis cultivation is predominantly dependent on clonal propagation, which creates barriers to meeting product demand and is not sustainable due to risk of disease susceptibility.