Full Press Release Details
Lexaria Announces Groundbreaking Technology Licensing
Kelowna, BC / March 22, 2016 / Lexaria, Corp. (OTCQB:LXRP)
(CSE:LXX) (the Company ) is very pleased to announced it has effected a Letter
of Intent to license its patent pending technology for the purpose of entering
the U.S. regulated medical and adult use cannabis edibles marketplace. Lexaria
is not itself producing any products under the agreement, instead making its
technology available to state-licensed entities.
Under the terms of the agreement, the Licensee will pay a
minimum of US$122,000 to Lexaria over the initial two-year term contemplated,
which provides for a limited scope of exclusivity to a pre-defined product line
in the state of Colorado. The agreement contemplates significant opportunities
to expand, both in scope of products offered as well as geographically. If the
Licensee were to introduce three product lines utilizing the Lexaria technology
in each of four states contemplated, for example, then Lexaria could expect to
receive $1,064,000 over approx 3 years, and the Licensee would enjoy
semi-exclusivity to introduce its quality products in each of those states.
There is no maximum amount of compensation defined by the Letter of Intent. A
definitive agreement is expected to be announced in the coming weeks.
Lexaria is currently in discussions with several other
enlightened companies also interested in licensing the Lexaria absorption and
flavour enhancing technology that provides for improved food consumption
experiences and performance for their customers. Increasingly, companies realize
that flavor enhancement and more efficient and effective absorption of active
molecules not only benefits consumers, but is becoming a necessity as companies
look to individualize their products and compete in increasingly crowded market
sectors. Lexaria s technology provides significant competitive advantages to its
Time and again, in every test situation we have devised,
Lexaria s technology continues to show widespread positive analytical and
consumer outcomes, said John Docherty, President of Lexaria. We applaud that
our first licensing partner recognizes the benefits this technology enables, and
their determination to provide their customers with the very best that cutting
edge science and technology can provide.
The parties have already collaborated on human testing using
Lexaria s technology compared to conventional bioabsorption enhancement
formulations beginning in early February. Testing thus far has evaluated
cannabis oil infused gourmet chocolates created by the Licensee incorporating
Lexaria s technology in comparison to chocolates formulated using a leading
aqueous solubility enhancing agent used in commercial food production today
capable of enabling cannabinoid intestinal absorption.
In early results, test subjects ranked those chocolates that
had been created with Lexaria s technology as the best tasting, most palatable
and providing the best overall experience of the chocolates sampled.
Furthermore, the test subjects indicated a time of onset of the cannabis oil effects in as little as 15-20 minutes on average. The study
included 12 volunteers who were all regular cannabis consumers with experience
ingesting conventional edibles. All chocolates used in the study were blinded
(unmarked) in order that the subjects could not discern the product formulations
This, our first technology licensing activity, demonstrates to
all stakeholders that our technology offers valuable benefits to corporate
partners, even before our patents are awarded, said Chris Bunka, CEO of
Lexaria. We expect our technology to eventually be present in food products
across America and internationally, not just enabling improved cannabinoid food
experiences, but also doing so for vitamins and a host of other bioactive
Lexaria s unique patent pending technology allows for more
efficient and effective absorption of certain molecules such as vitamins and
cannabinoids, while simultaneously masking and at times even eliminating
inherent strong flavours and/or odors typical of those molecules. Lexaria s
technology is extremely cost effective to implement and applicable to the widest
imaginable spectrum of foods including but not limited to chocolates, candies,
coffee, tea, bottle drinks of all kinds including carbonated or those containing
alcohol, protein bars, cookies, pastas, entrees, breads, and much, much more.
Lexaria is a food sciences company focused on the delivery of
active compounds that can behave as superfoods through its proprietary infusion
technologies. Lexaria s technology enables higher bioavailability rates for CBD;
THC; NSAIDs; Nicotine and other molecules than is possible without lipophilic
enhancement technology. This can allow for lower overall dosing requirements
and/or higher effectiveness in active molecule delivery. Lexaria hopes to reduce
other common but less healthy ingestion methods such as smoking as it embraces
the benefits of public health. www.lexariaenergy.com
ViPovaTM uses only legal hemp oil extracts, grown
from agricultural hemp in locations where it is legal to do so, in
ViPovaTM-branded tea, coffee, and hot chocolate. ViPovaTM
uses its patent-pending process to infuse concentrated amounts of hemp oil
within lipids, providing more bioactivity and comfort to the body during the
absorption process. Only ViPovaTM has this ground-breaking technology
for hemp oil/lipid infusion. www.vipova.com
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FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements. Statements
which are not historical facts are forward-looking statements. The Company makes
forward-looking public statements concerning its expected future financial
position, results of operations, cash flows, financing plans, business strategy,
products and services, competitive positions, growth opportunities, plans and
objectives of management for future operations, including statements that
include words such as "anticipate," "if," "believe," "plan," "estimate,"
"expect," "intend," "may," "could," "should," "will," and other similar
expressions are forward-looking statements, including but not limited to: that
the Company s technology enables higher rates of absorption of certain molecules
such as vitamins and cannabinoids while simultaneously masking and at times even
eliminating inherent strong flavors and/or odors typical of those molecules, or
that the technology will function in a similar manner if tested with THC,
nicotine, or any of the other molecules named in our patent applications. Such
forward-looking statements are estimates reflecting the Company's best judgment
based upon current information and involve a number of risks and uncertainties,
and there can be no assurance that other factors will not affect the accuracy of
such forward-looking statements. Access to capital, or lack thereof, is a major
risk and there is no assurance that the Company will be able to raise required
working capital. Factors which could cause actual results to differ materially
from those estimated by the Company include, but are not limited to, government
regulation, managing and maintaining growth, the effect of adverse publicity,
litigation, competition, the patent application and approval process and other