Full Press Release Details
Lexaria Closes Financing, Enters Investor Relations
Agreement, Issues Options
Kelowna, BC / June 06, 2016 / Lexaria Bioscience Corp.
(OTCQB:LXRP) (CSE:LXX) (the Company ) announces it has closed the private
placement equity financing announced May 31.
The financing was for 700,000 equity units priced at US$0.11;
each equity unit consisting of one common share of the Company and one-half of a
non-transferable share purchase warrant, each whole warrant entitling the holder
to purchase one additional common share of the Company for a period of three
years from the date of issuance, at a purchase price of US$0.14; in order to
raise gross proceeds of up to CDN $100,000 (US$77,000) (the "Private
All funds raised of US$77,000 will be used to continue
deployment and marketing of hemp based food products, for investor relations,
and for G&A and general working capital.
The securities issued will be subject to a hold period in
Canada of four months and one day, or for any resales into the USA under Rule
144, six months and one day. The Private Placement is subject to normal
regulatory approvals.
Lexaria also announces it has engaged the services of Frontier
Merchant Capital Group ( Frontier ) with a head office in Toronto, Canada, for a
period of one year. Lexaria will pay CDN $6,000 per month (approx US$55,400
total) and issue 300,000 stock options with an exercise price of US$0.14,
vesting immediately, for this 12-month services contract. Frontier will assist
the Company by increasing market awareness utilizing a number of financial
market communication initiatives. The core of these will be facilitating
in-person introduction for the Company with institutional and retail brokers and
investors in cities across Canada, the US, and potentially Europe.
Lexaria is also issuing 25,000 stock options to a consultant of
the Company, also with an exercise price of US$0.14, to vest immediately.
The securities referred to herein will not be or have not
been registered under the United States Securities Act of 1933, as amended, and
may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
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, a wide variety of other beverages, protein bars, cookies, pastas,
entrees, breads, and much more.
Lexaria Bioscience Corp. 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
FOR FURTHER INFORMATION PLEASE CONTACT:
Lexaria Bioscience Corp.
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. 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 factors which
may be identified from time to time in the Company's public announcements and
filings. There is no assurance that the recent license agreement, hemp oil
sector, or alternative health businesses will provide any benefit to Lexaria, or
that the Company will experience any growth through participation in these
sectors or as a result of the license agreement. There is no assurance that
existing capital is sufficient for the Company's needs or that it will be able
to raise additional capital. There is no assurance that the Company will receive
all or any part of the $122,000 to $1,064,000 in payments contemplated under the
recently announced definitive license agreement. There is no assurance that
Lexaria will successfully complete any other contemplated or existing technology
license agreements, nor that Lexaria s technology will deliver any improvement
in taste or bioavailability with any reliability nor across any product
category. There is no assurance that any planned corporate activity, business
venture, or initiative will be pursued, or if pursued, will be successful. There
is no assurance that any hemp oil or cannabinoid-based product will promote,
assist, or maintain any beneficial human health conditions whatsoever, nor that
any patent application in the USA or any other nation or under any treaty will
result in the award of an actual patent; nor that an award of any actual patent
will protect against challenges from unknown third parties. There is no
assurance that any of Lexaria s postulated uses, benefits, or advantages for the
patent-pending technology will in fact be realized in any manner or in any part.
No statement herein has been evaluated by the Food and Drug Administration
(FDA). ViPovaTM products are not intended to diagnose, treat, cure or
prevent any disease.
The CSE has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.