Full Press Release Details
Lexaria Focuses on Technology; Sells Burlington MMPR License
Kelowna, BC / June 12, 2015 / Lexaria, Corp. (OTCQB:LXRP)
(CSE:LXX) (the Company ) provides the following update related to the
Burlington MMPR license application.
Lexaria has made significant gains in developing and
implementing certain technologies related to the patent pending methods designed
to improve bioavailability of certain molecules, including CBD and THC. As
recently reported, Lexaria has now included in its patent pendings, applications
for lipophilic delivery of Nicotine, NSAIDs, and certain vitamins. The
prospective markets for bioavailable edible product formats for these active
ingredients are large and require disciplined corporate focus.
As a result, Lexaria management has made the decision to sell
its interest in the Health Canada MMPR application located in Burlington, ON.
The Burlington MMPR license application will continue its application process
under new ownership. A potential purchase price of CDN$1,500,000 for 100% of the
application has been negotiated approximately 50% of that due to Lexaria -
with virtually all payments contingent on future progress with the license
application and operation.
Because of the sale of this joint venture project prior to the
receipt of a MMPR license, 500,000 previously issued escrowed and restricted
common shares of Lexaria will be returned to Lexaria s treasury and cancelled,
as per the joint venture agreement. This will reduce our shares outstanding by
As is well known, progress with this application, along with
casual evidence through the media of hundreds of other applications, has been
slower than expected. Lexaria has continued to spend inordinate amounts of
management time and corporate money, every month, pursuing this license. Lexaria
estimates it will immediately reduce outgoing costs by approximately
$20,000/month not including executive management time - by no longer pursuing
the MMPR application. Lexaria is released from all future cost burdens
associated with this license application effective May 25, 2015.
In addition, through examination of the industry in Canada and
current participants within the sector, it is apparent that rising capital
expenditure costs of construction and set-up, and rising ongoing costs of
compliance with Health Canada regulations, have lessened the attractiveness of
the legal marijuana growing market in Canada compared to Lexaria s technological
Lexaria thanks the hard working Enertopia management team for
their dedication and perseverance in advancing this project and designing what
could still be one of Canada s most impressive medical marijuana grow
facilities, said Chris Bunka, CEO of Lexaria. By not directly competing with Canada s
already-licensed MMPR growers, Lexaria is also opening the door to more
immediately available technology licensing possibilities for THC edibles
utilizing our patent pending lipid infusion technology. Lexaria can and is now
focusing its capital and management time on its pursuit of intellectual
property, technology licensing opportunities, and an expanding portfolio of
patent pending applications. The Company is intent on introducing an expanding
variety of CBD-fortified consumer food products which remains on target for 2015
Lexaria is a food sciences company focused on
the delivery of cannabinoid compounds procured from legal, agricultural hemp,
through gourmet foods based upon its proprietary infusion technologies.
legal CBD oil extracts, grown from agricultural hemp in locations where it is
legal to do so, in ViPovaTM-branded tea. ViPovaTM uses its
patent-pending process to infuse concentrated amounts of CBD within lipids in
its tea, providing more bioactivity and comfort to the body during the
absorption process. Only ViPovaTM has this ground-breaking technology
for CBD/lipid infusion. www.vipova.com
FOR FURTHER INFORMATION PLEASE CONTACT:
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 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 medical marijuana, CBD sector,
or alternative health businesses will provide any benefit to Lexaria, or that the Company will experience any growth through participation in these sectors. There is no assurance that existing capital is sufficient for the Company's needs or that it
will need to attempt to raise additional capital. There is no assurance that the potential future payments contemplated in the Letter of Intent to sell the Burlington MMPR license application will ever be received. 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 cannabinoid-based product will promote, assist, or maintain any beneficial human health conditions
whatsoever. There is no assurance that the cannabinoid/lipid infusion technology will provide any increase in bioavailability to any individual person. 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.