NetworkNewsWire Editorial Coverage: With the expected legalization of recreational cannabis use in Canada just months away, the Canadian cannabis industry is experiencing a frenzied flow of capital that is only likely to accelerate. While this capital rush won’t affect every company in the space, the overriding sentiment supports global aspirations and trickle-down opportunity for innovators like Lexaria Bioscience Corp. (OTCQX: LXRP) (CSE: LXX) (LXRP Profile). This unprecedented cash flow is already fueling the construction of the largest grow facilities the world has ever seen, as well as increasingly hectic merger and acquisition strategies undertaken by companies like MedReleaf (OTC: MEDFF) (TSX: LEAF), Aurora Cannabis, Inc. (OTC: ACBFF) (TSE: ACB), Cronos Group, Inc. (OTC: PRMCF) (CVE: MJN) and Organigram Holdings, Inc. (OTC: OGRMF) (TSXV: OGI).

Reuters has reported that the value of cannabis deals this year has already reached $1.2 billion, more than double the total for 2017, which was itself a record (http://nnw.fm/14nLi). For these pioneers of pot, halcyon days lie ahead in 2018. For perspective, contrast Canada’s revenue outlook with the U.S.-based Arcview Group, which bills itself as the largest cannabis-focused investment network in the world. It has taken Arcview members several years to raise a total of US$150 million, which is no small accomplishment in a country where federal cannabis regulations can still put you in prison, but not remotely competitive against the billions being raised north of the 49th parallel.

It may be inevitable that some portion of the billions of Canadian cannabis money find their way into either developing, licensing, or buying the technology necessary to dominate the rapidly developing global legal cannabis market, and Lexaria Bioscience Corp. (OTCQX: LXRP) (CSE: LXX) has positioned itself squarely in the midst of this trend.

Lexaria’s Golden Nugget: Drug Delivery Technology

Innovators in the field of drug delivery engineer technologies to improve the targeting of therapeutic agents and their controlled release. In general, drug therapies have vastly enhanced Hippocratic practices but many come with pernicious side effects, since active agents very often cannot discriminate between healthy and unhealthy cells. Some others, although rather more benign, require large dosages or prolonged treatment since, with current delivery methods, much of the active agent is simply not absorbed by the body and goes to waste.

However, Lexaria has developed an oral digestion technology, DehydraTECH™, which improves the absorption rates of nicotine, non-steroid anti-inflammatory drugs (NSAIDs), vitamins and cannabinoids, by as much as five to 10 times. The significance of this edible technology is that this improved absorption may translate into lower dosages and shorter treatment regimens.

DehydraTECH also improves delivery times, delivering payload molecules to the bloodstream in 15-25 minutes, as opposed to 60-90 minutes for current methods. The new patented, disruptive drug delivery platform changes the way Active Pharmaceutical Ingredients (APIs) enter the body orally. The technology eliminates the need to add high concentrations of sweeteners, since it masks unwanted tastes. But, more importantly, it avoids first-pass liver metabolism, which mitigates side effects and improves the bioavailability of its client drug.

Ingestion of a medication, typically, follows a prescribed path. After the digestive system absorbs the ingredients, they are moved to the hepatic portal system en route to the liver. The liver, which among other things converts foods into the nutrients that can be used by the body, dutifully embarks on its routine of metamorphosis. Unfortunately, many therapeutic agents are neutralized in the process, which is why those that bypass the liver, using DehydraTECH for instance, tend to be more effective.

Edible Integration

DehydraTECH has already proven its mettle as Lexaria has deployed the innovative delivery platform to its product line. This consists of distinct brands: ViPova and TurboCBD. ViPova is a delicious Chinese black tea from the province of Yunnan, made from hemp oil infused within dried evaporated non-fat milk. Introduced in January 2015, the tea is available in a variety of flavors. In addition, there is Lexaria’s TurboCBD, a brand of technologically enhanced, high absorption hemp oil capsules that came to market in March 2017. TurboCBD’s cannabinoid content is fortified with high-quality American ginseng and ginkgo biloba to support enhanced focus and memory while reducing stress and fatigue.

Lexaria’s Engine of Growth is its Drug Delivery Platform

Despite the refreshing range of products, what’s under the hood matters more. Since the DehydraTECH technology can be used to improve the delivery of a wide range of substances, including ibuprofen, nicotine, fat-soluble vitamins, THC and CBD, this puts Lexaria in the enviable position of being a natural partner to cannabinoid biotech companies as their star rises, situated as an enabler rather than a competitor. Moreover, at present, Lexaria is the only company in the world that has been awarded a patent for the improved delivery (oral or ingestible, including capsules and pills) of all non-psychoactive cannabinoids.

Patents have been awarded in the United States and Australia and are pending in 40 more countries, as well as transnationally under the Patent Cooperation Treaty, as Lexaria’s patent portfolio grows. The company has filed 19 patent applications that include both method and composition of matter claims. The patents issued in the United States and Australia include “Food and Beverage Compositions infused with Lipophilic Active Agents and Methods of Use thereof.”

This puts the company in the unusually advantageous position of owning proprietary technology that can deliver a vast range of non-psychoactive cannabinoid-based drugs. Lexaria has already had discussions with major pharmaceutical and other Fortune 500 companies regarding its technology. The smallest deal with any one of these could increase revenues by over $1 million; the largest by much, much more, according to CEO Chris Bunka in a recent interview (http://nnw.fm/jY9gG). Moreover, Lexaria’s licensing model will generate revenues at very little cost, leaving 90 to 100 percent of revenues as profit.

Key Developments

On Jan. 25, 2018, Lexaria announced it had entered one such technology licensing agreement with Cannfections Group Inc., which produces cannabis-infused chocolates and candies (http://nnw.fm/qLBl3). Cannfections Group has been newly established by one of Canada’s leading chocolate companies, which has over 85 years of experience in producing high quality chocolate and confectionary products. The parent company currently manufactures chocolate retail products for several leading international and domestic chocolate brands.

“By licensing our technology to Cannfections, Lexaria can now offer its commercial clients the expertise of one of Canada’s oldest and most established chocolatiers utilizing next-generation DehydraTECHTM technology,” Bunka stated in the press release. “This is a long term strategic relationship meant to offer technology, value and expertise to Licensed Producers wanting to offer the highest quality chocolate edibles available in Canada once permitted under Health Canada regulations.”

Canadian Cannabis Wheeling & Dealing

Cannabis market leaders are providing their investors with unheralded liquidity while other leaders are hot on the investment and acquisition path. And in recent weeks and months, governments in Australia, Italy, the Netherlands, Germany and elsewhere have begun to open their markets to cannabis imports and exports for the first time in history, allowing for the beginnings of a global market in cannabis trade.

MedReleaf’s (OTC: MEDFF) (TSX: LEAF) recent Initial Public Offering (IPO) of approximately $75 million is thus far the largest marijuana company IPO in North America. MedReleaf, the first and only ISO 9001 certified cannabis producer in North America, was founded just four years ago and is one of less than four dozen licensed producers and retailers of medical cannabis products in Canada. Its focus is on the supply of dried cannabis, cannabis oils, and cannabis oil capsules to qualified medical patients in Canada but it also sells various accessories, such as vaporizers and grinders. Earlier this month, the company released details of further possible capital inflows. It announced an agreement with Canaccord Genuity Corp. and GMP Securities L.P (http://nnw.fm/g1GgG) under which the two underwriters will purchase the company’s common stock in a deal valued at C$100.7 million (US$85.8).

Some of that cannabis cash is also likely to pay for Aurora Cannabis’ (OTC: ACBFF) (TSE: ACB) 800,000-square-foot state-of-the-art Aurora Sky project and help Canada’s No. 2 marijuana producer take over smaller rival CanniMed Therapeutics Inc for C$1.1 billion (US$852 million). Aurora had originally made a hostile bid capped at C$24 (US$20.45) per share for CanniMed, but this new offer was priced at C$43 (US$36.64). The deal marked the world’s biggest marijuana M&A transaction to date.

Meanwhile, the Cronos Group, Inc. (OTC: PRMCF) (CVE: MJN) is doing deals too. In January 2018, the company announced the closing of its C$46 million bought deal public offering (http://nnw.fm/Qdc3S), the proceeds of which the company has allocated toward expanding production capacity, research and development initiatives, and for general working capital purpose. Cronos Group is a geographically diversified and vertically integrated cannabis company that operates two wholly owned licensed producers (LPs) regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations (the ACMPR) and holds a portfolio of minority investments in other licensed producers. The company’s flagship LPs, Peace Naturals Project Inc. (Ontario) and Original BC Ltd. (British Columbia), are collectively situated on over 125 acres of agricultural, licensed land. Peace Naturals Project Inc. recently obtained a Dealer’s License pursuant to the Controlled Drugs and Substances Act under Health Canada. This enables the Cronos Group, through Peace, to export medical cannabis extracts, including concentrated oil and resin products, internationally.

Organigram Holdings (OTC: OGRMF) (TSXV: OGI) is also cashing in on investor optimism. The company made public its agreement with Eight Capital under which Eight Capital and others will purchase 100,000 convertible debentures at a price of $1,000 per debenture for a total of $100 million (http://nnw.fm/39euQ). The company said it intends to use part of the net proceeds of that offering to expand its domestic and overseas market presence.

Anticipated Supply Shortfall

As legalization looms in Canada, investors are opening their checkbooks to a wide range of cannabis companies. With legalization, demand for cannabis is expected to surge. There are indications that, at present, a supply shortfall could occur. In the short term, it looks like a seller’s market and the volume of funds flowing into the industry is clear evidence of that.

For more information on Lexaria, visit Lexaria Bioscience Corp. (OTCQX: LXRP) (CSE: LXX)

About NetworkNewsWire

NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

For more information, please visit https://www.NetworkNewsWire.com

NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW undertakes no obligation to update such statements.



Source:

NetworkNewsWire



Contact:

NetworkNewsWire (NNW) 
New York, New York 
www.NetworkNewsWire.com
212.418.1217 Office 
Editor@NetworkNewsWire.com