LXRP - Lexaria Closes Sale of Non-Pharmaceutical THC-Related Assets
(TheNewswire)
Asset Sale in Preparation forPotential US National Securities Exchange Listing
Kelowna, British Columbia - TheNewswire - December 10, 2020 - Lexaria Bioscience Corp. (OTC:LXRP) (CSE:LXX)(C NSX :LXX. CN ) (the “Company” or“Lexaria”), a global innovator in drug deliveryplatforms, announces that it has closed the saleof its non-pharmaceutical THC-related assets (“the Assets”) heldwithin Lexaria Canpharm ULC, a Lexaria wholly-owned subsidiary, toHill Street Beverage Company Inc. (“Hill Street”) (TSXV: BEER) asfirst announced on November 19, 2020.
The total agreed-upon purchase price for the Assets is$3,850,000. Lexaria has received $350,000 in cash (all prices inCDN$), 6,031,363 restricted common shares of Hill Street at a deemedprice of $0.0829 per share as the first required equity-based payment,a promissory note having a principal amount of $2,000,000 and bearinginterest at the rate of 10% per annum, and a limited license to usethe DehydraTECH TM technology outside of Canada and the US forcertain non-pharmaceutical, therapeutic and medicinal products thatcontain 0.3% or greater THC. Pursuant to the terms of thetransaction, Lexaria will receive another $1,000,000 worth of commonshares of Hill Street over the next sixteen months.
Lexaria retains ownership of the DehydraTECH technology(which Hill Street has acquired the right to use and sublicense forTHC-related purposes) and all pharmaceutical applications of THC andother psychoactive cannabinoids. This transaction has no relevance onLexaria’s separate CBD business nor any other Lexaria businessdivision.
Hill Street intends to begin commercializing theintellectual property immediately through both licensing and B2Bsales, as well as utilize Lexaria’s proprietary DehydraTECH processin its own brands while continuing to work with the existing THClicensee contracts it has now assumed from Lexaria. “We believethis acquisition positions us to become both the taste and experienceleader in Cannabis 2.0 products,” said Terry Donnelly, Chairman andCEO of Hill Street.
“We can’t wait to see what Hill Street has up theirsleeves with the full power of DehydraTECH supporting them,” saidChris Bunka, Chairman and CEO of Lexaria. “Lexaria is activelypreparing to focus on working with global leaders in the delivery ofdrugs and active ingredients for treatment of conditions such ashypertension and viral diseases, together with its ongoing programs todevelop superior non-combusted, oral forms of nicotine.”
The Asset sale was one of the larger objectivesnecessary to be met as Lexaria seeks to list its securities on anational US securities exchange, and Lexaria will report ondevelopments related to that objective as they unfold.
About Lexaria
Lexaria BioscienceCorp.’s (OTCQX: LXRP, CSE: LXX) proprietary drug deliverytechnology, DehydraTECH™, improves the way active pharmaceuticalingredients (APIs) enter the bloodstream by promoting healthier oralingestion methods and increasing the effectiveness of fat-solubleactive molecules, thereby lowering overall dosing. The Company’stechnology can be applied to many different ingestible productformats, including foods, beverages, oral suspensions, tablets, and capsules. DehydraTECH hasrepeatedly demonstrated since 2016 with cannabinoids and nicotine theability to increase bio-absorption by up to 5-10x, reduce time ofonset from 1 - 2 hours to minutes, and mask unwanted tastes; and isplanned to be further evaluated for orally administered bioactivemolecules, including anti-virals, cannabinoids, vitamins,non-steroidal anti-inflammatory drugs (NSAIDs), and nicotine. Lexariahas licensed DehydraTECH to multiple companies including aworld-leading tobacco producer for the development of smokeless,oral-based nicotine products and for use in industries that producecannabinoid beverages, edibles, and oral products. Lexaria operates alicensed in-house research laboratory and holds a robust intellectualproperty portfolio with 18 patents granted and approximately 60patents pending worldwide. For more information, please visit www.lexariabioscience.com .
About Hill Street Beverage CompanyInc. (TSX-V:BEER)
Hill Street Beverage Company is a leading andaward-winning company focused on alcohol-free beer, wine, andadult-format beverages. Hill Street's brands include Hill Street CraftBrewed Lager, Vin(Zero) and Vintense wines, and have won numerousmedals and accolades around the world. Hill Avenue Cannabis, theCompany’s wholly owned subsidiary, will produce and sellcannabis-infused adult beverages and other cannabis products withexpected distribution at licensed outlets in 2020. Check out HillStreet's award-winning line-up and order product to be deliveredstraight to your home at www.hillstreetbeverages.com .
INVESTOR CONTACT:
Phone: 866-221-3341
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements. Statements assuch term is defined under applicable securities laws. Thesestatements may be identified by words such as "anticipate,""if," "believe," "plan,""estimate," "expect," "intend,""may," "could," "should,""will," and other similar expressions. Such forward-lookingstatements in this press release include, but are not limited to,statements by the company relating the Company’s ability to achievea national securities exchange listing and the impact on the Company,as well as the Company’s ability to carry out the hypertension,antiviral and pharmaceutical research initiatives, receive regulatoryapprovals or experience positive effects from any antiviral researchor study. Such forward-looking statements are estimates reflecting theCompany's best judgment based upon current information and involve anumber of risks and uncertainties, and there can be no assurance thatthe Company will actually achieve the plans, intentions, orexpectations disclosed in these forward-looking statements. As such,you should not place undue reliance on these forward-lookingstatements. Factors which could cause actual results to differmaterially from those estimated by the Company include, but are notlimited to, government regulation and regulatory approvals, managingand maintaining growth, the effect of adverse publicity, litigation,competition, scientific discovery, the patent application and approvalprocess, potential adverse effects arising from the testing or use ofproducts utilizing the DehydraTECH technology, the Company’s abilityto maintain existing collaborations and realize the benefits thereof,and other factors which may be identified from time to time in theCompany's public announcements and periodic filings with the USSecurities and Exchange Commission on EDGAR. There is no assurancethat existing capital is sufficient for the Company's needs or that itwill be able to raise additional capital. There is no assurance theCompany will be capable of developing, marketing, licensing, orselling products containing any active ingredient. There is noassurance that any planned corporate activity, scientific research orstudy, business venture, letter of intent, technology licensingpursuit, patent application or allowance, consumer study, or anyinitiative will be pursued, or if pursued, will be successful. Thereis no assurance that any of Lexaria’s postulated uses, benefits, oradvantages for the patented and patent-pending technology will in factbe realized in any manner or in any part. No statement herein has beenevaluated by the Food and Drug Administration (FDA). Lexaria-associated products are not intended to diagnose, treat,cure or prevent any disease.
Any forward-looking statements contained in this release speak only asof the date hereof, and the Company expressly disclaims any obligationto update any forward-looking statements contained herein, whether asa result of any new information, future events, changed circumstancesor otherwise, except as otherwise required by law.
The CSE has not reviewed and doesnot accept responsibility for the adequacy or accuracy of thisrelease.
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