LEXXW - Lexaria Signs Manufacturing and License Agreements with BevNology
(TheNewswire)
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Expands DehydraTECH™ B2Bmanufacturing capabilities to support Lexaria’s growing corporatecustomer base
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Lexaria to also receive royaltyrevenue from DehydraTECH product sales through BevNology’scommercial license rights
Kelowna, British Columbia – TheNewswire - June 21, 2022 –Lexaria Bioscience Corp. (Nasdaq:LEXX) (Nasdaq:LEXXW) (the“Company” or “Lexaria”), a global innovator in drug deliveryplatforms is pleased to announce the signing of two agreements withAtlanta-based BevNology LLC (“BevNology”).
The first agreement is a manufacturing operatingagreement that expands production capabilities for Lexaria’s owngrowing list of business-to-business (“B2B”) clientele interestedin purchasing DehydraTECH-powered active ingredients for consumerpackaged-goods brands. A new, state-of-the-art processing facilitycustom-built by BevNology is operationalthat increases and broadens production capacity and is currentlyserving Lexaria’s corporate clients. Lexaria has moved and installedall required commercial DehydraTECH manufacturing equipment intoBevNology’s new facility as it prepares for future growth in its B2Bingredient processing business.
The second agreement is a commercial license agreementthat empowers BevNology to offer DehydraTECH products with activeingredients derived from hemp including cannabidiol (“CBD”) underBevNology and partnered brands. For powdered DehydraTECHformulations this agreement is non-exclusive. For liquid DehydraTECHformulations, where BevNology has highly specialized skills andcapabilities, the license is non-exclusive in most areas of the worldbut includes limited exclusivity rights in the United States only,that require certain minimum fee payments in order to maintain thoserights. Lexaria will receive royalties from BevNology as a result oftheir utilization of this license. The only countries specificallyexcluded under this license are Japan, the Republic of Korea, and thePeople’s Republic of China.
“We are very excited about this expanded partnershipwith Lexaria, which will further strengthen our longtime relationshipas well as boost our development and manufacturing capabilitiesthrough the addition of our new facility. This will allow us to expandour product and service offerings,” said Gonzalo de Aristegui,partner and co-founder of Bevnology.
Founded 10 years ago by Louis Heinsz and Gonzalo deAristegui, Bevnology is the product development and manufacturing armof IBC ( InterContinentalBeverage Capital ). It operates astate of the art lab and manufacturing facility outside Atlanta,Georgia
“These agreements build on a long standing and verysuccessful product development consulting relationship between Lexariaand the expert scientists and personnel at BevNology,” said ChrisBunka, CEO of Lexaria. “BevNology’s formulation and productioncapabilities are class leading and we are confident that our newrelationship with our trusted partner will propel new and excitinggrowth opportunities for both companies.”
Bevnology has advanced capabilities that supportbest-in-class beverage formulations and, together with Lexaria’ssuperior technology, could make industry-leading beverage products areality for many brands. Lexaria’s DehydraTECH TM -CBDnanoemulsification formulation and processing techniques exhibited exceptional stability oneyear after production with less than 1% variability in CBD potency in fractions sampled from the top, middle andbottom of the beverage formulation without physical mixing oragitation; and, CBDcontent was verified at 93.4% of target potency and also evidencedexcellent microbial purity after 12 months.
The latest stability testing occurred 25 months afteroriginally bottling, with slightly higher variability but stillretaining an average 78% of originally formulated CBD. As well, themicrobiologic purity and cleanliness of the product exceeded allrequirements 25 months after bottling.
Lexaria’s DehydraTECH technology has been embraced byseveral consumer-packaged goods brands currently available in over7,000 stores in the US and Japan, as well as throughdirect-to-consumer online retail portals.
About BevNology LLC
BevNology is a leading beverage development andadvisory company with the focus on providing top-notch formulation andcommercialization services of cutting-edge beverage products for bothnew and existing brands. BevNology’s outside the box thinking aswell as creative product development innovation has earned them thetop position in the beverage industry. The team at BevNology eachhave over 30 years of beverage development and beverage designexperience in the Beverage Industry.
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 andover 50 patents pending worldwide. For more information, 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 otherreasons, and other factors which may be identified from time to timein the Company's public announcements and periodic filings with the USSecurities and Exchange Commission on EDGAR. There is no assurancethat any of Lexaria’s postulated uses, benefits, or advantages forthe patented and patent-pending technology will in fact be realized inany manner or in any part. No statement herein has been evaluated bythe Food and Drug Administration (FDA). Lexaria-associated productsare not intended 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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