More Companies Lining Up to Get Their Hands on Lexaria’s DehydraTECH™ Platform


Ash Stringer

August 15th, 2019

App, Exclusive, News, Top News




When you’ve got something great, it may take a little bit of time for people to learn about it, but once word starts getting around, it can yield a windfall of interest. That’s the case with Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) and its DehydraTECH™ technology that enhances qualities and uptake of all sorts of lipophilic (fat-based) molecules. As such, companies from diverse businesses have partnered with Lexaria recently, including Hill Street Beverage last week.

So What’s the Big Deal with DehydraTECH?

The human body has a natural digestive process that is quite proficient at filtering molecules to ensure safe delivery of only beneficial substances. In scientific nomenclature, a molecule (an oral medicine for example) actually reaching the human bloodstream is referred to as “bioavailability” and it can be a real challenge to do so.

Click on the Video for Education on Lexaria’s DehydraTECH™ technology.

DehydraTECH™ is an efficient Trojan horse for getting molecules delivered in oral form around the filtering process of liver metabolism and into the bloodstream. Lexaria accomplishes this by joining the payload – albeit a vitamin, active pharmaceutical ingredient, nicotine, cannabinoid, etc. – with a microscopic particle of a special type of fat known as LCFA’s (long chain fatty acids). Upon ingestion, the body detects the LCFA, not the molecule hidden alongside. There are a multitude of positive results from this technology, which have been verified through lab and human studies.

Click Here to View Lexaria’s Investor Presentation

For starters, many beneficial molecules taste and smell horrible. DehydraTECH™ eliminates that problem, making them palatable without using sugar like most competitors do today. Even more importantly, the bioavailability profile changes dramatically. The time it takes to feel the effect can be shaved to as little as 10 minutes (as little as 2 minutes in animal testing) from the natural metabolic process that typically takes around 90 minutes. Furthermore, bioavailability can surge as much as 10-fold, meaning the consumer is getting more of what they want and need faster.

Opportunities Abound

The beauty of the DehydraTECH™ technology is that it is easily and cost-effectively implemented into existing manufacturing operations. It appeals to a diverse group of customers because of the many different types of molecules for endless applications. As detailed in the company’s presentation, from pills to coffee, DehydraTECH™ is a highly versatile drug delivery method.

Some of the initial targets being focused on are cannabinoids, NSAIDs such as ibuprofen (non-steroidal anti-inflammatory drugs), vitamins and nicotine. The opportunity to genuinely disrupt the nearly $1 trillion market with the world’s first ingestible nicotine product did not escape Marlboro owner Altria (NYSE: MO). In January, the international tobacco behemoth agreed to put up $12 million for R&D and product development for oral, reduced risk nicotine consumer products using DehydraTECH™ and agreed to pay Lexaria a royalty on products sold with DehydraTECH™ technology.

July Big Month for New Partners

The cannabis market is booming, as more health conscious consumers look to the plant for all of its therapeutic effects. In particular, people are looking to cannabidiol (CBD), a prominent cannabinoid found in hemp and cannabis trumpeted for its benefits for treating everything from dry skin to epileptic seizures.

The legalization of hemp at the start of the year thanks to the passage of the U.S. Farm Bill has the hemp market abuzz and Lexaria is in the thick of it. Early in July, the company’s subsidiary Lexaria Hemp Corp. entered a 5-year agreement to provide DehydraTECH™ technology to Nic’s Beverages Ltd for use in CBD-based beverages to be produced and sold throughout America.

Nic’s is the fourth company (3 in the U.S. and 1 in Canada) to license the technology for beverages. Nic’s plan is to begin making ready-to-drink cold brew coffees enhanced with CBD from multi-spectrum hemp oil.

“DehydraTECH™ technology is perfect in allowing us to deliver CBD from hemp oil with zero impact on our cold brewed coffee’s outstanding aroma or flavor,” commented Nic’s CEO John Goodpasture.

A day after the Nic’s deal was disclosed, Lexaria said it inked a 5-year deal to provide DehydraTECH™ to B2B manufacturing company Universal Hemp LLC. Universal Hemp will be using the technology for its hemp-derived CBD bulk ingredients it supplies to the nutraceutical and consumer packaged goods industries throughout the U.S. and Canada.

“In terms of bioavailability, shelf stability and taste, [DehydraTECH™] is the best performing technology in the market, hands down,” said Chad Kahunahana, CEO and Founder of Universal Hemp about the partnership.

Future royalties and other financial terms were kept confidential, but it was revealed that the deal has minimum down payments over the life of the contract of US$3.75 million.

Lexaria kept the momentum going all month, announcing a 10-year joint manufacturing partnership (JMP) with Hill Street Beverage Co. (TSX-V: BEER) to create commercial products utilizing DehydraTECH. Per the pact, the companies will work together to make THC cannabis and/or CBD hemp powder for all new (and yet unnamed) consumer products in the form of tablets, capsules and packets.

Click Here to View Lexaria’s Investor Presentation

The JMP will also produce similar powders as a bulk ingredient for manufacturing processes for sale to other licensed producers seeking to use Lexaria’s advanced infusion technologies to create their own wide variety of products for sale within Canada.

Hill Street is in the midst of completing the acquisition of OneLeaf Cannabis. Manufacturing of the new goods, which will be handled by Hill Street and utilize DehydraTECH™ in the process, is expected to be done at OneLeaf’s cultivation and processing facility in Regina, Saskatchewan, pending all Health Canada approvals.

For its part in bringing DehydraTECH™ to the table, Lexaria is entitled to 50% of the new company’s profits.

The companies are making the moves now to be properly positioned when cannabis-infused edibles become legal throughout Canada later this year.

The JMP may be new, but the relationship between Hill Street and Lexaria is not. Hill Street had previously licensed the DehydraTECH™ technology for CBD-infused beverage sales in Canada. Last week, a new 10-year agreement was forged giving Hill Street global rights on a semi-exclusive basis.

It seems that CEO’s of consumer product companies are enamored with DehydraTECH: “Lexaria has proven themselves time and again to be the ideal infusion platform for our products,” commented Hill Street’s Chairman and CEO, Terry Donnelly.

Under the terms of the agreement, Hill Street is paying Lexaria US$1.8 million in BEER stock, most up front, with the remainder owed upon meeting milestones for entering new international markets.

Lexaria announced in August that they’ve received a cannabis R&D license from Health Canada that does not expire until August 2023, allowing the company for the first time ever to place its state-of-the-art laboratory into operation and accelerate a truly impressive research program.

“Lexaria has evolved so rapidly and achieved so much in the past eight months, that we are nearly unrecognizable compared to the end of 2018,” said Chris Bunka, Chief Executive Officer of Lexaria. “We’re signing new customers at ten times the rate of previous years; we’ve partnered with one of the largest companies in North America; additionally, we’ve just completed construction of one of the most advanced labs in the industry. 2019 has been a fabulous year so far and we think it will only get better, and drive strong new revenues and advances into 2020 and far beyond.”

The most recent sign of those advances is the appointment of Mr. Brian Quigley to their board of directors. Mr. Quigley most recently spent 16 years at Altria Group, 7 of those years were spent as President and Chief Executive Officer for U.S. Smokeless Tobacco and Nu-Mark, Altria’s innovation company. It was during that period of time that the existing business relationship between Altria and Lexaria was negotiated.

“I am thrilled to be joining the already strong team at Lexaria Bioscience. From my first engagement with Chris, it was clear to me that Lexaria and its leadership team is positioned to create change through innovation in both the Cannabis and Nicotine space. It is an honor to join this team after forging such a strong partnership with them during my time with Altria.”

Consumer Products Company? Licensing Company? Try Both.

Because Lexaria has two brands of its own: ViPova (a beverage lineup of teas and coffee) and both TurboCBD capsules and ChrgD+ powdered drink mix, they sometimes get lumped in with other CBD consumer brands companies. Adding in the new venture with Hill Street adds to that assumption.

Fact is though, technology licensing is at the core of Lexaria’s business. Candidly, it is a far more lucrative business too, with margins generally 90+%. With a robust patent estate of about a dozen issued patents and more than 60 additional pending, management has built itself a strong position with a better solution than sweeteners and chemicals for any and all ingestible products by merely adding one step to the manufacturing process.

When more companies continue to learn that they can add DeyhydraTECH™ to their operations to make lipophilic compounds palatable with superior bioavailability for only a fraction of a penny per product serving, there is likely going to be more companies knocking on Lexaria’s door.

Click Here to View Lexaria’s Investor Presentation

Click Here For More Information on Lexaria Bioscience Corp.

Click Here to Receive CFN Media’s Newsletter Every Week in Your Inbox

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.

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.

Avatar

About Ash Stringer



Network Partners

Follow Us on Social Media

About CFN Media Group

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/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading