Lexaria to provide patented technology to California cannabis company (CSE: LXX)
Lexaria Bioscience (OTCQX: LXRP) (CSE: LXX) has entered a definitive 5-year agreement, via its subsidiary Lexaria CanPharm ULC, to provide Lexaria's patented DehydraTECHTM technology to a private California-based cannabis company for its utilization in certain cannabis-based beverages to be produced and sold in the states of California and Nevada. “Financial terms of the agreement are not being disclosed. The DehydraTECH-enabled beverages are protected under Lexaria's many existing US-granted patents and may include any combination of ready-to-drink beverages such as non-alcoholic beers, wines and spirits; cold or hot coffee or teas, sports drinks and much more. Lexaria has developed methods of combining nano-emulsion technology with its proprietary DehydraTECH processes to create beverages with market-leading aesthetic and performance characteristics. Lexaria is currently experiencing unprecedented demand in several North American markets for use of its technology for beverage applications.”
Lexaria has also reported additions to their Scientific Advisory Board. The additions are: Dr. Dwayne Godwin, Dr. Terry D. Blumenthal, Dr. Matthew Fraser and Dr. Carla Lema Tome. Each person has a strong set of credentials that can be found (here). The fact that people of such standing in their respective scientific communities reflects very well on the DehydraTECH™ technology, John Docherty, Chris Bunka and the Company. It also reflects well on our investment in Lexaria.
LXRP also reports it has retained Oak Hill Financial to provide investor relations services. Oak Hill is a Toronto-based firm that develops strategic platforms for its clients that are utilized to gain exposure and recognition in the capital markets. Oak Hill will work closely with Lexaria to develop and deploy a comprehensive capital markets strategy and campaign. Activities will include providing an investor relations program catering to retail investors, marketing services and an ongoing client services program. This will come as good news to shareholders who believe that LXRP needs to increase the level of communication with shareholders.
It has been a frustrating period for Lexaria shareholders because the stock has lagged the overall cannabis stock group. However, we shouldn’t forget that they are working through a deal with Altria (NYSE: MO), the world’s largest tobacco company and as this news indicates they are expanding the list of users of their technology, some truly outstanding scientific people have joined the Scientific Advisory Board and they are taking steps to increase their exposure to the investment community. At times like this, I believe investors should take advantage of weakness in the stock price to add to portfolios.