The last time we mentioned Lexaria Bioscience Corp. (OTMKTS:LXRP) here on Street Register, we were talking about the company’s patented DehydraTECH™ technology, which increases intestinal absorption rates of cannabinoids, vitamins, NSAIDs, nicotine and more, for more rapid delivery to the bloodstream.
The Canadian company had just negotiated a technology licensing agreement to utilize DehydraTECH™ in cannabis infused chocolates and candies, and as we’re swinging back around to LXRP for the first time in roughly a month, yet another such agreement has been announced.
This week, Lexaria Bioscience Corp. (OTMKTS:LXRP) announced it has entered an agreement with NeutriSci International Inc (OTCMKTS: NRXCF) such that NeutriSci now owns 100% of Ambarii Trade Corporation, and Lexaria has granted to NeutriSci an Intellectual Property License and Supply Agreement (the “License Agreement”) for the manufacturing and sale of CBD based products.
Under the License Agreement, NeutriSci will continue the development and sales of its proprietary sublingual mouth-melt consumer products that incorporate Lexaria’s DehydraTECH™ technology for enhancing palatability and bioavailability of beneficial non-psychoactive cannabinoids in NeutriSci’s existing and pipeline product formats. Lexaria will earn ongoing royalty revenues from the sales generated by these products.
“The relationship between our companies has evolved in a positive fashion and allows us each to focus on our core competencies which should benefit all stakeholders,” commented Chris Bunka, Lexaria CEO. “Neutrisci has developed a unique form factor that can now be empowered with Lexaria’s complementary technology which also allows consumers everywhere to benefit.”
“We are very pleased to announce this long-term licensing and development agreement with Lexaria,” commented Glen Rehman, NeutriSci President. “This agreement will allow NeutriSci to focus on the global distribution of our proprietary CBD product line while letting Lexaria focus on licensing and development. This change to our business relationship is a win-win for both parties.” (Source: Globe Newswire)
Separately, the Company also announces the exercise of warrants and options previously granted. The Company has received for exercise a total of 46,266 warrants with an exercise price of US$0.60. The Company has also received for exercise 50,000 stock options with an exercise price of US$0.2273. The warrant and option exercises are by third parties who are neither officers nor directors of the Company.
Following this issuance, there will be 71,097,305 Common shares of the Company issued and outstanding. The Company received proceeds of $39,124.60 from the exercise of these warrants and options. No commissions or placement fees have been paid related to the funds received from these warrants exercised. Proceeds will be used for general corporate purposes.
Meanwhile, in terms of the LXRP chart, we would classify this as a good play to watch for a bottom. It surged heavily toward the end of 2018, and has been under gradual consolidation for the majority of 2018 so far. We will want to be there when a definitive area of support is reached, and the stock begins to make a recovery. With the aggressiveness with which the company has worked to get its DehydraTECH™ technology licensed and out into the marketplace, we like its chances of doing just that, and thus it will continue to occupy a space on our watch lists. We’ll stay up on any further developments with LXRP and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free small cap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below hit the button. Subscribe now!
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.