Drug delivery platform innovator Lexaria Bioscience (CSE: LXX) (OTCQX: LXRP) today announced that its wholly-owned subsidiary Lexaria Nicotine LLC has executed a definitive agreement with Altria Ventures Inc., an indirect wholly owned subsidiary of Altria Group, Inc. (NYSE: MO), to pursue innovation in oral, reduced risk nicotine consumer products using Lexaria's patented DehydraTECHâ„¢ technology. In exchange for a minority equity interest in Lexaria Nicotine and DehydraTECHâ„¢ license rights for oral nicotine delivery forms on an exclusive basis in the US and a non-exclusive basis elsewhere globally, Altria will fund a milestone-based research & development ("R&D") program to be executed by Lexaria Nicotine. The company will conduct a series of clinical investigations of oral forms of nicotine delivery, utilizing DehydraTECHâ„¢ technology. The funding from Altria will consist of an initial $1 million with the option for additional funding of up to $12 million through multiple phased private financings. Altria will pay Lexaria Nicotine a royalty on revenue generated from the sale of nicotine products containing DehydraTECHâ„¢ and holds the option to acquire 100% ownership in Lexaria Nicotine, at which time royalty payments would stop. Additionally, Altria has the right to initially appoint one of the seven directors on Lexaria Nicotine's board of directors and, through further phased investments, may have the right to appoint up to three of the seven directors.
“Lexaria Bioscience is proud that, after careful selection, Altria has chosen to fund research into DehydraTECHâ„¢ technology and potentially commercialize this technology for oral nicotine,” Lexaria Bioscience CEO Chris Bunka stated in the news release. “This partnership will provide significant benefits to Lexaria Bioscience and its shareholders with a world-class R&D Program and regulatory compliance process. We believe Altria is the best corporate partner we could work with to truly make a difference in the lives of millions of consumers.”
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About Lexaria Bioscience Corp.
Lexaria Bioscience Corp. has developed and out-licenses its disruptive delivery technology that promotes healthier ingestion methods, lower overall dosing and quicker onset of lipophilic active molecules. Lexaria has ten patents granted in the USA and in Australia and has filed over 50 patent applications worldwide across ten patent families. Lexaria's technology provides more rapid delivery to the bloodstream; and important taste-masking benefits, for orally administered bioactive molecules including cannabinoids, vitamins, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine and other molecules. Lexaria Nicotine LLC is a United States domiciled, majority-owned subsidiary of Lexaria Bioscience Corp., focused on reduced-risk nicotine solutions www.LexariaNicotineco.com. For more information, visit the company’s website at www.LexariaBioscience.com.
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