Few small-cap or nano-cap companies manage to form formal relationships with Fortune 500 companies. Some of the largest companies in the world have asked about our technology and we knew from those discussions that our DehydraTECHMT the technology had the ability to deliver greater results than simply getting cannabis users to experience the desired effects quickly. Although it will take longer to design and gain approval for the next generation of nicotine products in the United States and around the world, Lexaria is very confident that it will. Lexaria is proud to have attracted Altria Group, Inc, owner of combustible and non-combustible tobacco companies that have been the undisputed market leaders of the United States tobacco industry for decades.
In 2019, we finalized a new contractual relationship with a GMP-certified and FDA-registered manufacturing company to market enhanced DehydraTECH powders in the United States with a current capacity of approximately 200,000 servings per day which can be increased to 400,000 servings per day in the same facility. , as required. Lexaria is experiencing high demand from many companies requesting pretreated DehydraTECH enhanced bulk powders for their specific product lines and with this facility we can meet that demand.
Lexaria’s intellectual property strategy continues to bear fruit, as we received our first-ever patents to use DehydraTECH with cannabinoids for the treatment of diseases such as Alzheimer’s disease, schizophrenia, Parkinson’s disease and in August 2019 in Australia. Lexaria is using the procedural tools offered by the International Patent Prosecution Highway, to seek expedited patent status for these same conditions in the United States in 2020. Strengthened patent claims related to health issues enable Lexaria to establish relationships in the pharmaceutical industry; one of our goals for 2020.
As we enter the first quarter of 2020, we are seeing signs of increased revenue from Lexaria which should be sustainable and support future growth. One of our existing US customers is embarking on an aggressive growth strategy from their home state to several other states over the next year. Another existing US customer will launch its bottled beverage with CBD and DehydraTECH technology within the next 90 days, generating Lexaria’s first revenue in the first quarter.
With existing customers, Lexaria expects to more than double its overall 2019 revenue. With a rich pipeline of additional potential customers onboarded in 2020, we expect to see further revenue gains. Confidence in our working relationships with existing corporate clients allows us to say that we expect strong and sustainable revenue growth in 2020 and beyond.
One of the Company’s objectives in 2020 is to radically change its capital markets strategy. Over the past six months, Lexaria has met with a number of Wall Street investment banks as we develop our long-term capital markets strategy. Lexaria plans to pursue a strategy in 2020 to qualify for listing on a nationally recognized U.S. exchange, allowing a significantly wider audience of investors to consider Lexaria’s attributes and paving the way for a quantity and increased quality of strategic opportunities.
To view the full strategy update, visit www.lexariabioscience.com/news/
Lexaria Bioscience Corp. is a global innovator in drug delivery platforms. Its patented DehydraTECH™ drug delivery technology changes the way active pharmaceutical ingredients enter the bloodstream, promoting healthier methods of ingestion, lower overall dosage, and greater efficacy for lipophilic active molecules. DehydraTECH increases bio-absorption; reduces spawn time; and masks unwanted tastes from orally administered bioactive molecules, including cannabinoids, vitamins, nonsteroidal anti-inflammatory drugs (NSAIDs), nicotine, and other molecules. Lexaria has licensed DehydraTECH to several companies in the cannabis industry for use in cannabinoid beverages, edibles, and oral products; and a world leader in tobacco production for the development of smokeless oral nicotine products. Lexaria operates an in-house licensed research laboratory and holds a strong intellectual property portfolio with 16 granted patents and more than 60 patents pending worldwide.
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FOR MORE INFORMATION, PLEASE CONTACT:
Lexaria Bioscience Corp.
Chris Bunka, CEO
This press release contains forward-looking statements. Statements that are not historical facts are forward-looking statements. The Company makes forward-looking public statements regarding its expected future financial condition, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and management objectives for its future operations, including statements that include words such as “anticipate”, “should”, “believe”, “plan”, “estimate”, “expect”, “have the intent to”, “may”, “could”, “should”, “will” and other similar expressions are forward-looking statements, including, but not limited to: that any additional patent protection will be realized or that the patent achievements will produce significant results. These forward-looking statements are estimates reflecting the Company’s best judgment based on current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of these statements. prospective. Factors that could cause actual results to differ materially from those estimated by the Company include, but are not limited to, governmental regulation and regulatory approvals, managing and sustaining growth, the effect of adverse publicity, litigation, competition, scientific discovery, patent application and approval process and other factors which may be identified from time to time in public announcements and documents filed by the Company. There can be no assurance that the existing capital is sufficient for the needs of the Company or that it will be able to raise additional capital. There can be no assurance that the Company will be able to develop, market, license or sell edibles containing cannabinoids, nicotine or any other active ingredient. There is no assurance that any corporate activity, scientific research or study, commercial enterprise, letter of intent, technology license application, patent application or grant, consumer study or any planned initiative will be pursued or, if pursued, will succeed. There can be no assurance that any of the uses, benefits, or benefits Lexaria postulates for the patented and patent-pending technology will actually be realized in any way or in any part. No statement in this document has been evaluated by the Food and Drug Administration (FDA). Products associated with Lexaria are not intended to diagnose, treat, cure, or prevent any disease.
The CSE has not reviewed and accepts no responsibility for the adequacy or accuracy of this release.
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