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  • Writer's pictureTed Ohashi

Lexaria (CSE: LXX) endorsed by major U.S. brokerage firm

Readers know I believe Altria (NYSE: MO) is very important to Lexaria’s (CSE: LXX) (OTCQX: LXRP) future. Now a major American brokerage firm says just the opposite and I couldn’t be happier. In a June 3, 2019 report on Altria, two Piper Jaffray analysts imply that Lexaria could be important to Altria’s future!

Piper Jaffray is a major American brokerage firm founded in 1895 and now listed on the New York Stock Exchange. They have 37 senior analysts that their website says “…are regularly recognized by The Wall Street Journal “Best on the Street” surveys, Greenwich Associates’ Institutional Investors surveys and Thomson Reuters’ Starmine Awards.

Here is the title of a five page ‘Company Note’ on Altria Group: Two Recent Investments Reflect Focus on Oral Nicotine Delivery.

I think it is significant that the banner leads with a reference to two investments Altria has made in Oral Nicotine Delivery. Read on because one of those investments is Altria’s investment in the Lexaria R&D transaction.

On page 1 of the report on Altria written by Sr. Research Analyst Michael S. Lavery and Research Analyst Jeffrey L. Kratky, we find the following statement:

“We expect cigarette category volume declines to remain lumpy, but also expect it to benefit from its stake in JUUL and broader portfolio of products, including oral products. It announced a deal for the on! brand of oral nicotine pouches (tobacco-free). In addition, it has a smaller, separate deal to fund R&D in Lexaria Nicotine with a focus on innovation with better taste, onset and efficacy of nicotine delivery.”

A little further down but still on the front page, Lavery and Kratky say, “Lexaria license could drive Altria's innovation. DehyrdraTECH improves taste, onset and efficacy of oral products with nicotine, which could make oral nicotine products more compelling for smokers looking to switch to alternatives. It uses fatty acids to steer nicotine away from bitter taste receptors and to absorb more quickly into the blood stream, bypassing the liver….”

In my opinion, this endorsement from a major New York Stock Exchange listed U.S. brokerage firm should provide a significant boost to Lexaria’s credibility that should translate into a higher market valuation.

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