Lexaria Looks to Validate Breakthrough Technology


Ryan Allway

May 27th, 2015

News, Top Story


The medical cannabis industry has grown at a 16.2% compound annual growth rate between 2009 and 2014 to reach $2 billion in revenue, according to IBISWorld, driven by state legalization initiatives and research conducted by companies like GW Pharmaceuticals plc (NASDAQ: GWPH). GreenWave Advisors believes that figure could reach $35 billion by 2020 if all 50 states legalized the drug and the federal government ended prohibition.

Lexaria Corp. (OTCQB: LXRP) (CSE: LXX), a food sciences company focused on the delivery of cannabinoid compounds using its proprietary infusion technology, plans to capitalize on the rapidly growing industry by improving the bioavailability of medical cannabis. In addition, it was only weeks ago that Lexaria appointed a new company president, Mr John Docherty, who has an extensive and accomplished background from the pharmaceutical industry. Lexaria seems to be taking bona fide steps to position itself as a leading technology force within the industry.

Importance of Bioavailability

Many cannabis users know that smokable and edible forms of the drug produce completely different experiences. In a 2005 study, researchers found that smoking cannabis resulted in 30% bioavailability of THC, while oral consumption resulted in just 4% to 12% bioavailability. A separate 2012 study found that the bioavailability of CBD was around 31% when smoked and just 6% when taken orally.

Researchers believe that the difference between smoked and oral consumption of the drug stem from the so-called first-pass effect – a phenomenon of drug metabolism whereby the concentration of a drug is greatly reduced before it reaches systemic circulation. Often times, the fraction of the drug lost during the absorption process occurs in the liver and gut wall where the drug is metabolized before reaching the rest of the body.

Lexaria’s patent-pending process actively binds CBD ingredients with a lipid in order to enable a more efficient delivery and absorption of CBDs and other cannabinoids when consumed orally versus being smoked. In May, the company announced that Absorption Systems LP would begin third-party in vitro tests using a human intestinal tissue model to evaluate the CBD permeability of its technology that infuses cannabinoid compounds within lipids.

Significant Potential

Lexaria’s technology could disrupt the entire legal cannabis market if these lab tests show that its technology delivers a bioavailability rate near that of smoking. As CEO Chris Bunka said in a recent interview with CannabisFN on the topic, “Why would any medical marijuana patient contemplate smoking ever again if we can actually deliver as much active ingredient with no harmful effects, as associated with smoking?”.

Medical marijuana patients that need the higher bioavailability of smoking marijuana to alleviate their pain symptoms could use the technology to avoid smoking, while the general public could benefit from wider bioavailability of CBD. The company’s existing product line – including ViPova teas – address this mass market with a product that’s easily consumed, while management plans to launch additional food and beverage products to consumers over the coming quarters.

And while Lexaria’s current focus is clearly on developing food based delivery mechanisms for CBD-fortified products, Bunka reminded CannabisFN that the patent applications have been filed for both CBD and for THC. If the third-party in vitro lab test results are strongly positive, the potential for this technology to be disruptive across the industry is apparent.

Earlier this year, the company hired a National Sales and Compliance Strategist to spearhead its U.S. sales operations and launched its initial Tea Party campaign to encourage grassroots growth. A channel partner program was also established to help facilitate the build-out of distribution channels throughout the country by working with exclusive retail operations or distributors across a number of different markets and verticals.

Near-term Catalysts

Lexaria expects to begin testing of its technology in the near future and will report results when they are available within the next three or four months. If successful, the testing could provide a significant catalyst for the stock given the potential within the cannabis market.

It is significant to note the time period in which their trials will be conducted, unlike a company that is taking a path to commercialization via FDA clinical trials (which can and do take many years to complete), Lexaria has chosen to go down a path where testing results will be turned around in a matter of months.

If proven effective, there should also be significant interest in the technology on the part of third party manufacturers, as the amount of THC and CBD’s that are needed to produce the same effect in edibles will be diminished.

Investors in the nutrition and supplements industry, including ForeverGreen Worldwide Corp. (OTCQB: FVRG) and Youngevity International Inc. (OTCQX: YGYI), may want to take a closer look at the stock given their similarities in market capitalization. In addition, investors in cannabis research companies, like Cannabis Science Inc. (OTC Pink: CBIS) and Cannabics Pharmaceuticals Inc. (OTC Pink: CNBX), may also be interested in learning more.

For more information, visit the company’s website at www.lexariaenergy.com or visit CannabisFN’s Lexaria Corp. Profile to see exclusive interviews and content.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.



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CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

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