LEXXW - Lexaria's Licensee Premier Wellness Science Co. Ltd. Launches New Brand in Preparation to Deploy DehydraTECH CBD Products in Japan
(TheNewswire)
Kelowna, British Columbia – TheNewswire - July 26, 2022 – Lexaria Bioscience Corp. (Nasdaq:LEXX) (Nasdaq:LEXXW) (the “Company” or“Lexaria”), a global innovator in drug delivery platforms ispleased to announce that its exclusive* Japanese Licensee, PremierWellness Science Co., Ltd., (“Premier”) officially launched itsfirst generation of its new cannabidiol(“CBD”) products under the brand “Ko”, on July 21, 2022 for the Japanese consumer market.
Premier will create its own e-commerce infrastructureand digital marketing campaigns in collaboration with its parentcompany, Premier Anti-Aging Co.,Ltd. (“Parent”) which is listedon the Tokyo Stock Exchange (4934:JP).
For wholesale sales, Premier will work with a largethird-party Japanese-based distribution company also listed on theTokyo Stock Exchange to expand sales channels. Originally founded in1898, it is a large distributor and logistics supplier for cosmetics,OTC pharmaceuticals and nutraceuticals to wholesalers, retailers andmore; and, shipped more than 3.5 billion products in its most recentfiscal year, comprised of over 50,000 products and over 50,000 retailstores of distribution.
The “Ko” brand is focused on the endocannabinoidsystem and circadian rhythm to support the health and wellness of allpeople, highlighted by the concept of wellness for all and willcontain CBD and other botanical extracts. Ko-branded productscontaining Lexaria’s DehydraTECH™ delivery technology are expectedto be introduced during Q2 2023, following rigorous productdevelopment and formula optimization.
Premier is working diligently to establish its newbrand while also looking towards extensive distribution for theDehydraTECH-enabled products to be developed and sold. Lexaria notesthe extensive capabilities of Premier, Parent, and PALTAC – allexpected to contribute to the eventual widespread introduction ofDehydraTECH-CBD products within the Japanese marketplace.
Under the terms of the license agreement with Lexariaas previously announced on June 3, 2022, Premier purchased therights to DehydraTECH technology for the Japanese non-pharmaceuticalmarket for use with CBD and hemp ingredients in oral liquid andnon-liquid products, as well as for topical, hair-care, lip-care andcosmetics products.
In order to retain ongoing exclusivity, the negotiatedminimum quarterly payments ("Payments") to Lexaria beginSeptember 1, 2022 and, during the first five years of the Agreement,amount to US$4,527,500. Additional payments beyond five years arerequired to keep the license in good standing, in which case thelicense for the Japanese market is perpetual.
In addition to the Payments, Lexaria will also receiveroyalty revenue from DehydraTECH licensed product sales, which areanticipated to be significantly greater than the minimum Paymentsif Premier is capable of meeting its expected revenue targets.If Premier achieves even their worst-case projected penetration intothe Japanese non-pharmaceutical CBD market, then based on theirprojections Lexaria could expect to receive annual payments of over $5million by the fifth year of the contract.
*The exclusive rights are subject to two previouslyissued licenses for use of DehydraTECH in Japan, which remain valid. Lexaria will not be issuing any further licenses in Japan fornon-pharmaceutical cannabinoid products.
About Lexaria Bioscience Corp.
Lexaria Bioscience Corp.’s patented drug deliverytechnology, DehydraTECH™, improves the way active pharmaceuticalingredients (APIs) enter the bloodstream by promoting more effectiveoral delivery. Since 2016, DehydraTECH has repeatedly demonstrated theability to increase bio-absorption with cannabinoids, antiviral drugs,PDE5 inhibitors and more. DehydraTECH has also evidenced an ability todeliver some drugs more effectively across the blood brain barrier.Lexaria operates a licensed in-house research laboratory and holds arobust intellectual property portfolio with 25 patents granted plus a26 th patent allowed; and roughly 50 patents pending worldwide. For moreinformation, please visit www.lexariabioscience.com .
CAUTION REGARDING FORWARD-LOOKINGSTATEMENTS
This press release includes forward-looking statements.Statements as such term is defined under applicable securities laws.These statements may be identified by words such as"anticipate," "if," "believe,""plan," "estimate," "expect,""intend," "may," "could,""should," "will," and other similar expressions.Such forward-looking statements in this press release include, but arenot limited to, statements by the company relating the Company’sability to carry out research initiatives, receive regulatoryapprovals or grants or experience positive effects or results from anyresearch or study. Such forward-looking statements are estimatesreflecting the Company's best judgment based upon current informationand involve a number of risks and uncertainties, and there can be noassurance that the Company will actually achieve the plans,intentions, or expectations disclosed in these forward-lookingstatements. As such, you should not place undue reliance on theseforward-looking statements. Factors which could cause actual resultsto differ materially from those estimated by the Company include, butare not limited to, government regulation and regulatory approvals,managing and maintaining growth, the effect of adverse publicity,litigation, competition, scientific discovery, the patent applicationand approval process, potential adverse effects arising from thetesting or use of products utilizing the DehydraTECH technology, theCompany’s ability to maintain existing collaborations and realizethe benefits thereof, delays or cancellations of planned R&D thatcould occur related to pandemics or for other reasons, and otherfactors which may be identified from time to time in the Company'spublic announcements and periodic filings with the US Securities andExchange Commission on EDGAR. There is no assurance that any ofLexaria’s postulated uses, benefits, or advantages for the patentedand patent-pending technology will in fact be realized in any manneror in any part. No statement herein has been evaluated by the Food andDrug Administration (FDA). Lexaria-associated products are notintended to diagnose, treat, cure or prevent any disease. Anyforward-looking statements contained in this release speak only as ofthe date hereof, and the Company expressly disclaims any obligation toupdate any forward-looking statements contained herein, whether as aresult of any new information, future events, changed circumstances orotherwise, except as otherwise required by law.
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