Drug delivery innovator Lexaria Bioscience Corp. (OTMKTS:LXRP) whose DehydraTECH™ technology increases intestinal absorption rates for more rapid delivery to the bloodstream, cannabinoids, vitamins, NSAIDs, nicotine and more, has announced a synergistic agreement that could make its mark on the cannabis industry.
Canada’s Cannabis scene is already thriving, but is set to go into overdrive this summer when sweeping legislation enacted last year goes into effect, thus making cannabis and its by-products legal for adult recreational consumption. LXRP is setting itself up to reap the rewards through a recently announced partnership with another Canadian company.
Lexaria Bioscience Corp. (OTMKTS:LXRP) entered a definitive technology licensing agreement with Cannfections Group Inc. whereby Lexaria is providing its patented DehydraTECH™ technology to empower next-generation performance in cannabis infused chocolates and candies to be developed and sold in Canada and internationally.
Cannfections Group Inc. is an infused chocolate and gummies contract manufacturer that has been newly established by one of Canada’s leading chocolate companies with over eighty-five years of experience in producing high quality chocolate and confectionary products that meet the industry’s strictest quality requirements, as a pending entrant into the Licensed Producer program for cannabis infused products. The founders of Cannfections currently manufacture chocolate retail products for several leading international and domestic chocolate brands.
Under the terms of the Agreement, Lexaria can offer other licensee partners the option of utilizing Cannfection’s formulation and manufacturing expertise to produce cannabis infused, DehydraTECH™-powered chocolates and gummies where approved. This Agreement is expected to lead to new product entries for Canadian cannabis edibles, and exportation to the increasing number of other international markets where permitted around the world. The term of the agreement is seven years.
“By licensing our technology to Cannfections, Lexaria can now offer its commercial clients the expertise of one of Canada’s oldest and most established chocolatiers utilizing next-generation DehydraTECH™ technology,” said Chief Executive Officer Chris Bunka. “This is a long-term strategic relationship meant to offer technology, value and expertise to Licensed Producers wanting to offer the highest quality chocolate edibles available in Canada once permitted under Health Canada regulations.”
Lexaria’s patented DehydraTECH™ technology is focused on improved delivery methodologies of many commonly used active pharmaceutical ingredient (API) substances. As such, it provides an additional layer of effectiveness that is designed to harmonize with the intellectual property of third parties. Both patented and generic API substances can utilize Lexaria’s patented technology. (Source: LexariaEnergy.com)
There wasn’t much to write home about with regard to LXRP’s stock prior to this past fall, but beginning in November, the company began a steady climb up the charts that has more than tripled its value. This recently announced seven year agreement could provide even more of a boost. We don’t want to underestimate the economics of what is about to happen in the Canadian Cannabis space in 2018.
The company has said it will distribute its products beyond Canadian borders, but we feel the bulk of the opportunity, at least over the short term, lies in the Great White North. We’ve been talking up the potential of what we feel will be a Canadian Cannabis boom the likes of which we have not yet seen, and it is our belief that LXRP has just made a deal to take advantage of that. Keep it locked to Street Register for updates, and we’ll deliver those important developments on LXRP to you as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in LXRP stock, short or long.