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Lexaria: Moving Beyond the MMPR with PoViva

Ryan Allway

December 1st, 2014

News, Top Story

The medical use of marijuana has become well established over the past few years as clinical studies continue to demonstrate its potential in a number of areas. In fact, the U.S. government itself owns a patent titled Cannabinoids as antioxidants and neuroprotectants, which acknowledges the drug’s potential in limiting neurological damage following ischemic insults like stroke and trauma.

Many companies, including GW Pharmaceuticals plc (NASDAQ: GWPH) and Cannabis Science Inc. (OTC: CBIS), have been working hard on developing cannabinoid-based therapies to treat these conditions and others. While additional companies like Earth Science Tech. (OTC: ETST) have turned their focus towards becoming a wholesale supplier of CBD’s.

Lexaria Corp. (OTC: LXRP) has taken a hybrid approach to the market by operating as a potential licensed producer under Canada’s MMPR program, and subsequently expanding into the alternative health sector via its recent PoViva investment.

Making Progress in Becoming a Producer

Lexaria began its life as an oil and gas exploration company, but expanded into Canada’s emerging medical marijuana market back in March of 2014 via its joint venture Enertopia Corp. (OTC: ENRT) (CNSX: TOP). After replacing its MMAR with its MMPR program, Canada’s regulated medical marijuana market was opened up overnight to both public and private companies looking to get involved.

In July, the joint venture announced the submission of their application to become a Licensed Producer under Canada’s MMPR program. Management has been in frequent contact with Health Canada regarding the status of its application, and during these conversations, the company has received guidance in terms of security upgrades and other requirements that must be completed before approval.

The joint venture – of which the company owns 49% – has applied to produce 10,000 kilograms of medical marijuana each year under the MMPR program. At a baseline price of $5 per gram, these production levels could generate some $50 million per year in revenue. The company would be eligible to receive about half of that amount – or roughly $25 million in revenue per year via their partnership with Enertopia Corp.

Targeting the Alternative Health Sector

Health Canada has been inundated with over 1,000 applications to become licensed producers, which means that many projects are experiencing delays in responses and approvals due to Health Canada simply being overwhelmed. With this delay in mind, Lexaria decided to diversify into the alternative health care sector in November 2014 with its investment in PoViva Corp. in order to mitigate these risks and speed up its commercialization timeline.

PoViva has two pending patents that govern the process of infusing CBDs into food products by binding the active ingredients with a lipid. Since these CBDs are fat-soluble – which is why marijuana remains in the body for so long – the process offers an advantage over traditional CBD-based products that try to ineffectively combine the active ingredients with water-based products or foods.

The company plans on initially launching CBD-infused black teas, which are the second most consumed beverage in the world after water. To sell these teas and other upcoming products, management has commissioned an e-commerce website that will begin accepting orders in the near future. Additional sales channels will also be explored in order to open up the market to as many individuals as possible.

Management Team Committed to Success

Lexaria’s management team continues to progress the company through both of these fronts, while maintaining its existing oil and gas assets. In September, these Belmont Lake oil well assets began producing roughly 120bpd, which should generate near-term revenue for the company at no significant cost, given that it’s working with an operational partner on the ground.

The company’s management team also remains committed to success. CEO Chris Bunka owns a little over five million shares of stock that were purchased largely in open market transactions as opposed to stock grants. By purchasing the stock, the CEO has clearly demonstrated his confidence in the company, while management’s long track record speaks for itself when it comes to compliance.

Finally, investors in the cannabis industry may want to take a look at the company sooner rather than later. With a relatively small float, positive news could send shares higher in short order, while management’s diversification beyond Canada’s MMPR sets it apart from many competitors in the space.

For more information, visit the company’s website at www.lexariaenergy.com.

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.

Disclaimer: Matters discussed on this website 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. CFN Media Group, 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. CFN Media Group, 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. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, 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/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. 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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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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