Lexaria Bioscience Corp (OTCQX:LXRP) (CSE:LXX) announced Thursday that the volume of servings produced of its patented DehydraTECH-enabled CBD powders is expected to hit for 500% growth over the previous quarter.
On September 23, the company told investors it had received purchase orders for 4.4 million CBD servings of the powder, to be processed during the company’s fiscal first quarter of 2021, September 1 to November 30.
Now, processing rates have exceeded expectations, the company said, and as of October 21, Lexaria has already processed approximately 4.2 million servings and has confirmed purchase orders to process a total of over 8 million servings during the current quarter.
That new estimate represents over 500% volume growth from approximately 1.2 million CBD servings processed in the fiscal fourth quarter ended August 31, which itself reflected growth of 71% from the fiscal third quarter. One serving generally ranges from 10mg to 25mg of CBD, utilizing the company’s DehydraTECH processes.
Lexaria’s expectation is to produce at least 56 million servings during the 2021 calendar year, and, citing communication from existing customers, it says that number may prove to be conservative. However, these indicative orders do not include any additional demand from prospective future clients, Lexaria added.
The company’s business divisions include both technology licensing, in which corporate licensees implement DehydraTECH under license within their own facilities under royalty agreements, as well as also B2B operations where clients purchase pre-processed DehydraTECH CBD-powders manufactured at a Lexaria-contracted GMP-certified food facility for shipment back to the client for integration into their final product formats.
The Kelowna, British Columbia-based company’s DehydraTECH technology masks unwanted tastes, improves onset speed, and increases the bioavailability of active pharmaceutical ingredients in a simple and cost-effective platform.
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