- Lexaria
Nicotine LLC partners with one of the world’s largest tobacco companies
- Opportunity
to change nicotine delivery and improve the lives of millions
- Retains
ownership of DehydraTECH while licensing the technology out to multiple
industries
Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) recently
announced that its wholly owned subsidiary, Lexaria Nicotine LLC, has partnered
with one of the world’s largest tobacco companies to fund the research and
development of Lexaria’s patented DehydraTECH (http://ibn.fm/YwFuE). The
partnership may potentially commercialize this cutting-edge technology for oral
nicotine delivery.
Chris Bunka, CEO of Lexaria Bioscience, is excited about the
opportunity to work with a world-class partner. In a recent press release,
Bunka stated, “Together we have the opportunity to change nicotine delivery and
make a difference in the lives of millions of consumers.”
Lexaria’s goal is to create an oral product that eliminates
the need for inhalation and helps curb the smoking habits of consumers. Over
six million deaths a year worldwide are attributed to nicotine delivery through
smoking. The company believes that its DehydraTECH technology may help the 69
percent of U.S. adult smokers who want to quit move from cigarettes to a safer,
more effective delivery of nicotine (http://ibn.fm/Aps9F). This new partnership allows for
further research and development into oral, reduced-risk nicotine consumer
products.
In exchange for a minority equity interest in Lexaria’s
nicotine subsidiary, the partner will fund up to $12 million through multiple
phased private financings for Lexaria Nicotine LLC to conduct further research
and development. Assuming nicotine products using DehydraTECH become available
to consumers, Lexaria Nicotine will receive a royalty on revenue generated. The
partner has been given exclusive license rights to commercialize oral nicotine
products in the United States and nonexclusive rights for global
commercialization. The partner also holds the option to acquire ownership of
the subsidiary and has the right to appoint one of seven directors to the
subsidiary’s board of directors, with the potential to appoint additional directors
in the future.
Lexaria has created a number of individual subsidiaries,
such as Lexaria Nicotine, that allow the company to retain ownership of
DehydraTECH technology and license its use to multiple industries. This
innovative oral technology improves the taste, smell, rapidity and delivery of
bioactive compounds, which allows for the delivery of substances within edible
food products rather than the traditional unhealthy practice of smoking.
DehydraTECH works as an enabling technology rather than a
competing one, thereby allowing partnerships within multiple industries.
Currently, the technology is patent protected for cannabidiol and all other
non-psychoactive cannabinoids. Patents are pending for THC, nonsteroidal
anti-inflammatory drugs (NSAIDs), nicotine, other psychoactive cannabinoids and
other molecules. Lexaria has a total of 10 patents issued with over 50 more
pending.
For more information, visit the company’s website at www.LexariaBioscience.com
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