LXRP - Lexaria Provides Update on Ongoing Business Relationship with Altria Ventures
(TheNewswire)
Kelowna, British Columbia - October9, 2020 - Lexaria Bioscience Corp. (OTC:LXRP)(CSE:LXX) (CNSX:LXX.CN) (the "Company" or "Lexaria"), a global innovatorin drug delivery platforms updates the status of the businessrelationship between Altria Ventures Inc. ("Altria") andLexaria Nicotine LLC ("Lexaria Nicotine").
Altria now has non-exclusive licence rights to useDehydraTECH TM for both the US and worldwide markets under a predefinedroyalty structure payable to Lexaria Nicotine. Altria owns 16.67% ofthe equity of Lexaria Nicotine in connection with Altria's funding ofLexaria's nicotine R&D program in 2019. Lexaria Bioscience Corp.owns the remaining 83.33% equity of Lexaria Nicotine. Altria holdsone seat on the Board of Directors of Lexaria Nicotine and has noownership or board representation of Lexaria Bioscience Corp.
Altria has not exercised its First Warrant Tranche (assuch term is defined in the Warrant and Option Agreement dated as ofJanuary 15, 2019 among Lexaria, its majority-owned subsidiary LexariaNicotine LLC and Altria) to invest a further staged payment intoLexaria Nicotine and that warrant therefore expired along withAltria's former exclusive access to DehydraTECH for the US market, at11:59 PM on October 8, 2020.
"The research program initiated in 2019 withAltria significantly advanced our understanding of our patentedDehydraTECH drug delivery technology and indirectly led to additionaladvancements we are already exploiting in other market sectors,"said Chris Bunka, CEO of Lexaria. "We have since entered aR&D framework agreement with an international leader in thenicotine market and look forward to additional developments inadvancing reduced-risk methods of oral nicotine delivery through ournewly strengthened ability to serve the US market."
On October 22, 2019, the U.S. Food and DrugAdministration ("FDA") issued its first-ever modified risktobacco product ("MRTP") ruling related to eight smokelesstobacco products designed for oral use. The FDA allowed claims forthese products that using these products "instead of cigarettesputs you at a lower risk of mouth cancer, heart disease, lung cancer,stroke, emphysema, and chronic bronchitis." Lexaria stronglysupports the use of orally-delivered nicotine products as a sensiblealternative to combusted tobacco and believes DehydraTECH will play animportant role in this alternative.
The 2019 R&D program was initiated to evaluate oralnicotine delivery performance of an earlier 2018DehydraTECH oral nicotine formulation . Theprimary results related to the early-stage DehydraTECH formulationwere that:
- It demonstrated acceptable chemical andmicrobiological stability;
- It was well tolerated in a 7-day, repeat-dose acutetoxicology study in rats with no test article-related effects onsurvival, macroscopic findings, or organ weights and no testarticle-related histopathological tissue findings;
- It created no issues with throat burn and irritationin oral pouch and chew formats at standard commercial doses upon smallscale sensory analysis in humans; and
- It demonstrated formation of a unique mixture ofnanoparticles without formation of a covalently linked, new molecularentity construct upon molecular characterization by Canada's NationalResearch Council (NRC); and is therefore not believed to be preclusiveof Premarket Tobacco Product Application ("PMTA")applicability in this respect.
Lexaria continues to advance its R&D programs andshowcase its advanced technology to tobacco, nicotine andpharmaceutical companies and continuously seeks to expand itsportfolio and calibre of research collaborators and commercialpartners.
Lexaria Bioscience Corp's. (OTCQX: LXRP) proprietarydrug delivery technology, DehydraTECH(TM), improves the way activepharmaceutical ingredients (APIs) enter the bloodstream by promotinghealthier ingestion methods and increasing the effectiveness offat-soluble active molecules, thereby lowering overall dosing. TheCompany's technology can be applied to many different ingestibleproduct formats, including foods, beverages, oral suspensions,tablets, and capsules. DehydraTECH increases bio-absorption by up to5-10x, reduces time of onset from 1 - 2 hours to 15 - 20 minutes, andmasks unwanted tastes for orally administered bioactive molecules,including anti-virals, cannabinoids, vitamins, non-steroidalanti-inflammatory drugs (NSAIDs), nicotine, and other molecules.Lexaria has licensed DehydraTECH to multiple companies in the cannabisindustry for use in cannabinoid beverages, edibles, and oral productsand to a world-leading tobacco producer for the development ofsmokeless, oral-based nicotine products. Lexaria operates a licensedin-house research laboratory and holds a robust intellectual propertyportfolio with 16 patents granted and over 60 patents pendingworldwide. For more information, please visit www.lexariabioscience.com .
INVESTOR CONTACT:
Phone: 866-221-3341
FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements.Statements which are not historical facts are forward-lookingstatements. The Company makes forward-looking public statementsconcerning its expected future financial position, results ofoperations, cash flows, financing plans, business strategy, productsand services, competitive positions, growth opportunities, plans andobjectives of management for future operations. These statements maybe identified by words such as "anticipate," "if,""believe," "plan," "estimate,""expect," "intend," "may,""could," "should," "will," and othersimilar expressions, including but not limited to any statement thatany additional patent protection will be realized or that patentachievements will deliver material results. Such forward-lookingstatements are estimates reflecting the Company's best judgment basedupon current information and involve a number of risks anduncertainties, and there can be no assurance that the Company willactually achieve the plans, intentions, or expectations disclosed inthese forward-looking statements. As such, you should not place unduereliance on these forward-looking statements. Factors which couldcause actual results to differ materially from those estimated by theCompany include, but are not limited to, government regulation andregulatory approvals, managing and maintaining growth, the effect ofadverse publicity, litigation, competition, scientific discovery, thepatent application and approval process, the inherent uncertainties inthe initiation and completion of preclinical and clinical studies,whether interim results from a clinical study will be predictive ofthe final results of the study or the results of future studies, therisk that trials and studies may be delayed and may not havesatisfactory outcomes, potential adverse effects arising from thetesting or use of products utilizing the DehydraTECH technology, theCompany's ability to maintain existing collaborations and realize thebenefits thereof, and other factors which may be identified from timeto time in the Company's public announcements and filings. There is noassurance that any third-party will proceed with commercialization ofproducts even after obtaining a license to use the Company'sDehydraTECH technology. There is no assurance that existing capital issufficient for the Company's needs or that it will be able to raiseadditional capital. There is no assurance the Company will be capable of developing, marketing, licensing, orselling edible 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, cureor prevent any disease.
Any forward-looking statements contained in thisrelease speak only as of the date hereof, and the Company expresslydisclaims any obligation to update any forward-looking statementscontained herein, whether as a result of any new information, futureevents, changed circumstances or otherwise, except as otherwiserequired by law.
The CSE has not reviewed and doesnot accept responsibility for the adequacy or accuracy of thisrelease.
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