- LXRP’s
DehydraTECH research funded by a partner that will provide $1 million,
with an option for millions more
- LXRP
subsidiary Lexaria Nicotine LLC recently entered a definitive investment
agreement to receive R&D funding in exchange for equity and licensing
rights
- In
exchange, partner received minority equity interest in the subsidiary
Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) will
conduct a comprehensive series of clinical studies on oral forms of nicotine
delivery utilizing its DehydraTECH absorption platform. Under an investment
agreement by its wholly owned subsidiary, Lexaria Nicotine LLC, a partner will
provide $1 million toward research on nicotine consumer products that use
DehydraTECH (http://ibn.fm/9JkL7).
Lexaria’s partner will receive certain licensing rights to
commercialize these DehydraTECH products exclusively in the United States and
non-exclusively on a global scale. The partner, which will have the option to
provide up to $12 million in additional funding to underwrite LXRP’s R&D,
will pay LXRP a royalty on sales. The partner company will receive minority
equity in the subsidiary and future rights to purchase a 100 percent interest
in Lexaria Nicotine LLC at then-current fair market value, but not in LXRP
itself.
In a news release, LXRP CEO Chris Bunka said, “This partnership
will provide significant benefits to Lexaria Bioscience and its shareholders
with a world-class R&D program and regulatory compliance process.”
Based in British Columbia, Canada, LXRP is a biotechnology
company and drug delivery platform innovator that out-licenses its disruptive
delivery technology, which promotes healthier ingestion methods. DehydraTECH is
its proprietary absorption technology platform. LXRP holds a patent for oral
delivery of all cannabinoids and has a growing IP portfolio, which includes 10
patents granted in the United States and Australia and more than 50 patent
applications worldwide across 10 patent families.
For more information, visit the company’s website at www.LexariaBioscience.com
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