- LXRP’s DehydraTECH research funded by a partner that will provide $1 million, with an option for millions more
- LXRP subsidiary Lexaria Nicotine LLC recently entered a definitive investment agreement to receive R&D funding in exchange for equity and licensing rights
- In exchange, partner received minority equity interest in the subsidiary
Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) will conduct a comprehensive series of clinical studies on oral forms of nicotine delivery utilizing its DehydraTECH absorption platform. Under an investment agreement by its wholly owned subsidiary, Lexaria Nicotine LLC, a partner will provide $1 million toward research on nicotine consumer products that use DehydraTECH (http://ibn.fm/9JkL7).
Lexaria’s partner will receive certain licensing rights to commercialize these DehydraTECH products exclusively in the United States and non-exclusively on a global scale. The partner, which will have the option to provide up to $12 million in additional funding to underwrite LXRP’s R&D, will pay LXRP a royalty on sales. The partner company will receive minority equity in the subsidiary and future rights to purchase a 100 percent interest in Lexaria Nicotine LLC at then-current fair market value, but not in LXRP itself.
In a news release, LXRP CEO Chris Bunka said, “This partnership will provide significant benefits to Lexaria Bioscience and its shareholders with a world-class R&D program and regulatory compliance process.”
Based in British Columbia, Canada, LXRP is a biotechnology company and drug delivery platform innovator that out-licenses its disruptive delivery technology, which promotes healthier ingestion methods. DehydraTECH is its proprietary absorption technology platform. LXRP holds a patent for oral delivery of all cannabinoids and has a growing IP portfolio, which includes 10 patents granted in the United States and Australia and more than 50 patent applications worldwide across 10 patent families.
For more information, visit the company’s website at www.LexariaBioscience.com
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