Proactive Investors - Run By Investors For Investors

Lexaria Bioscience inks deal with Altria Ventures to develop reduced-risk nicotine products; shares soar

Shares of Lexaria jumped after the announcement, which will fund research on oral forms of nicotine delivery, using Lexaria's DehydraTECH technology
Lexaria Bioscience inks deal with Altria Ventures to develop reduced-risk nicotine products; shares soar
Altria will fund research into Lexaria Bioscience's DehydraTECH(™) technology to potentially commercialize oral nicotine technology

Cannabinoid-focused Lexaria Bioscience Corp (CSE:LXX) (OTCMKTS:LXRP) is adding to its roster with a new partnership deal with venture capital firm Altria Ventures aimed at developing reduced-risk nicotine consumer products.

The company said the partnership will focus on using Lexaria's Bioscience's proprietary DehydraTECH™ platform, which allows cannabidiol (CBD) and other oils to be dehydrated into an odorless, tasteless powder.

DehydraTECH also allows drugs and vitamins – in the case of cannabis, CBD – to get into the bloodstream quicker.

Shares of Lexaria Bioscience jumped Tuesday, up 25% at C$2.10 in Toronto.

READ: Lexaria Bioscience: The cannabis company developing a potentially life-saving technology

"Lexaria Bioscience is proud that, after careful selection, Altria has chosen to fund research into DehydraTECH™ technology and potentially commercialize this technology for oral nicotine," said Chris Bunka, CEO of Lexaria Bioscience, in a statement.

"This partnership will provide significant benefits to Lexaria Bioscience and its shareholders with a world-class R&D Program and regulatory compliance process. We believe Altria is the best corporate partner we could work with to truly make a difference in the lives of millions of consumers."

Agreement terms

Under the terms of the agreement, Altria has been granted exclusive DehydraTECH license rights to commercialize oral nicotine products in the US.

Altria will fund a research & development program in exchange for a minority equity interest in Lexaria Nicotine and certain DehydraTECH(™) license rights. Altria will provide initial funding of US$1 million, with the option for additional funding of up to US$12 million through multiple phased private financings.

The company said Altria will initially have the right to appoint one of the seven directors on Lexaria Nicotine's board of directors and, through the additional phased investments, may have the right to appoint up to three of the seven directors.

The company added that Altria has the option to acquire 100% ownership interest in Lexaria Nicotine commensurate with fair market value. Lexaria Bioscience has not sold or optioned any of its own equity.

'Powerful' patented DehydraTECH technology

"Lexaria Bioscience has repeatedly demonstrated the powerful effects of its patented DehydraTECH(™) technology for enhancing the palatability and speed of onset of orally-consumed bioactive substances such as nicotine," said John Docherty, president of Lexaria Bioscience.

"Laboratory research to date on oral nicotine formulations has been quite encouraging. We are very excited to advance the clinical phases of our comprehensive R&D Program together with Altria with a view to full commercial product development."


Contact Katie Lewis at [email protected]
Follow her on Twitter: @kelewis

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full LXX profile View Profile

Lexaria Bioscience Corp Timeline

Related Articles

cannabis tablet
February 28 2019
The company fills a niche in the medicinal cannabis market, as it continues to push forward its suite of precision oral dose products
Sydney Harbour Bridge
January 22 2019
A phase I study in Australia is evaluating a cannabis spray therapeutic in cancer patients.
Empower clinic locations
March 26 2019
Empower Clinics is one of the largest operators of medical-cannabis-focused healthcare in the US
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use