Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Chemesis International Inc. Signs Definitive Agreement to Acquire 80% of Puerto Rico Based Natural Ventures PR LLC
Chemesis International Inc. (CSE:CSI) (the "Company" or "Chemesis"), a market leader in recreational and medical cannabis, is proud to announce that it has entered into a definitive agreement to acquire 80% of Natural Ventures PR LLC ("Natural Ventures") via its subsidiary Chemesis PR, a 100% Puerto Rican company. The agreement amongst the parties has been submitted to the Puerto Rico Medical Cannabis Board for approval as per required by its regulatory framework. Natural Ventures is a seed to sale, medical cannabis company based in Caguas, Puerto Rico, a United States Territory. Natural Ventures represents a significant opportunity that will catapult Chemesis into position as a leader in both medical and recreational cannabis cultivation and manufacturing.
Natural Ventures has been operational since early 2017 and currently is expanding to meet its growing patient demand. Natural Ventures is licensed to cultivate 100,000 sq. ft. of cannabis and has 35,000 sq. ft. of manufacturing floor space for high quality cannabis products. It is currently producing solvent and CO2 based extraction for its oil-based products, and it also is producing edibles and other cannabis products.
Puerto Rico legalized medical cannabis for qualifying health conditions in 2015 and permits the use of medical cannabis derivatives only (e.g., capsules, extractions, lotions, patches, edibles, flower, and oils). Currently, there are 18 pre-approved health conditions including HIV, cancer, multiple sclerosis, migraines, anxiety, and epilepsy that are eligible to be treated with medical cannabis. Chemesis is poised to meet demand as the island continues to expand the number of qualifying conditions, and more patients receive permits.
"The acquisition of Natural Ventures is a very significant landmark for Chemesis," said CEO of Chemesis, Edgar Montero. "This acquisition gives the company access to a new consumer base as well as additional revenue opportunities. The operations in Puerto Rico unlock the ability to serve a large population for a variety of medical conditions, while being able to control costs and quality. The addition of Natural Ventures into the Chemesis family fits into our business model and growth strategy, as it will not only provide a strong benefit to our revenue stream but will unlock other opportunities in the global market place that are extremely important," said Montero.
In exchange for an 80% interest in the capital stock of Natural Ventures PR LLC, the Company will pay US$2,250,000 cash and US$1,682,085 of stock valued at CAD$1.00 per common share, subject to a 36-month phased lock-up. Closing is subject to Puerto Rico Medical Cannabis Board approval which is anticipated within 30 days. The Company has also agreed to make a convertible loan or capital contribution to Natural Ventures in the aggregate amount of US$750,000 on an as-needed basis for expansion purposes.
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, with operations in California and exploring expansion through Latin America.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution, and retail. Chemesis has seed to sale operations, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods to provide consumers with quality cannabis products.
Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering quality products to its consumers from seed to sale.
ON BEHALF OF THE BOARD OF DIRECTORS
Edgar Montero
CEO and Director
INVESTOR RELATIONS:
ir@chemesis.com
www.chemesis.com
1 (604) 398-3378
Forward-Looking Information:This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Company's business, products and future the Company's business, its product offerings and plans for sales and marketing. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company's products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend, to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
Quality Stock At A Discount
Pacton Gold: original article
Pacton Gold (TSX.V: PAC.V) (OTC: PACXF) has been pretty active in terms of its operational activities. Since the start of the year, the gold mining company has made several strategic moves, including the acquisition of key properties, raising funds and addition of key shareholder.
Pacton has acquired several key properties in Western Australia’s Pilbara Gold Rush. The Pilbara Gold Rush started last year in July after Artemis Resources and Novo Resources found near-surface conglomerate-hosted gold nuggets. By November, the region attracted as many two dozen resource companies.
“The Pilbara Region of Western Australia is one of the most resource-rich areas in Australia and there has been very little exploration at depth,” said David Lenigas – Artemis’ Executive Chairman.
Further, the Pilbara Gold Rush also attracted major players like Kirkland Lake Gold and kingmaker Eric Sprott, who has reportedly acquired a stake in many companies operating in the region (including Pacton Gold). The backing of Sprott in itself is a big reason to go bullish on any company. He is a “long-time gold bull,” who advised investors to buy gold before the financial disaster in 2008.
In Pacton, Sprott owns about 10.1% of the outstanding common shares giving him control over 18.4% of the company. So, the billionaire has a significant interest in Pacton’s success. Many see the involvement of Sprott and other big names in the Pilbara Gold Rush as sort of a guarantee for big returns.
“What has really attracted me to the Pilbara region is the involvement of Eric Sprott and Kirkland Lake, whose shareholders include heavies such as Van Eck, Fidelity and Oppenheimer,” long-time gold stock analyst and founder of Gold Stocks Trade – Jeb Handwerger told INN.
Pacton Gold, on its end, is continuing to build its portfolio. Last week, the company entered into another binding letter of intent to acquire Yandicoogina and Boodalyerrie exploration licenses and mining leases from Gardner Mining. “The acquisition of the Yandicoogina and Boodalyerrie Gold Projects provides a significant increase in the scale of exposure to the Pilbara region both in relation to conglomerate and structurally controlled gold systems,” said Pacton’s Interim President and CEO – Alec Pismiris.
And, it is not that the company is blindly picking up the properties. Instead, it is making sure that the assets that it acquiring are productive enough to help it meet its goals. Last week, the company announced that it is terminating its agreement with Marindi Metals (signed a few months back) following the “outcome of its due diligence investigations.”
Though the company is showing no signs of slowing, its stock has been dropping since last week or so. There are two reasons for it. First is the profit booking as Pacton’s stock (despite shedding over 27% in last five days) is up over 400% in last one-year and over 70% YTD. Second reason is the uncertainty over the gold prices, which breached the psychologically important $1,200 level earlier this week.
However, both these reasons do not hold for the long-term investors. Pacton has a robust portfolio of properties, and thus, offers more upside potential. And, gold, which has always been a safe haven, will regain its shine sooner or later. So, the recent drop must be seen as opportunity to get a quality stock at a discount.
Pacton Gold Announces Plans To Purchase Two Granted Mining Lease.
Pacton Gold: (PAC:TSX-V) (OTCMKTS:PACXF) has revealed that it has signed a letter of intent (LOI) to buy out two granted mining leases from an Australian limited exploration firm called Gardner Mining Pty Ltd.
As per the Letter of Intent, Pacton Gold plans to acquire 100 percent of Boodalyerrie and Yandicoogina mining leases and exploration licenses from the Australian firm. The acquisition is part of the company’s plan to boost its property portfolio in the Pilbara mining region in Western Australia as through the acquisition of the two strategic properties. The purchase deal is also courtesy of a strong relationship between the two companies through the acquisition of Friendly Creek.
As per the deal, the three exploration licenses and two granted mining leases will cover an area of roughly f 146.80 square kilometers. The Yandicoogina Project has a prospective strike of around 4.7 km which is defined by quartz veins that are structurally controlled and were previously home to work related to gold.
“The acquisition of the Yandicoogina and Boodalyerrie Gold Projects provides a significant increase in the scale of exposure to the Pilbara region both in relation to conglomerate and structurally controlled gold systems,” stated Pacton Gold’s acting president and CEO, Alec Pismiris.
Pismiris also pointed out that the high-quality nature of gold mineralization which is structurally controlled throughout the extensive length of the strike between the two projects makes it a high-value acquisition. He also added that his firm is eager to join forces with the Gardner team as they kick off the launch of the exploration programs within the projects.
The projects are characterized by impressive output
Rock samples taken from the Yandicoogina Project have demonstrated a range as high as 199.7 g/t Au. Meanwhile, the Boodalyerrie Project is covered by roughly 25 square kilometers of silica altered granite and sericite with broad quartz veining. This makes the project a considerable target size.
As for the highlights of the deal, it will feature three granted exploration licenses and two granted mining leases which will cover a total of 146 square kilometers. The leases will pave the way for immediate bulk sampling of mineralization over the area covered and this will also be done on a large scale.
The new leases are the latest addition to Pacton’s portfolio which also consists of 5 other granted mining leases that the company secured from the Friendly Creek deal which was announced towards the end of May this year. The 2.3 km of strike in the Boodalyerrie Project is between the Mount Roe Basalt and the Hardey Formation.
Pacton Gold’s stock performance
Pacton’s acquisition of the two leases is great news for investors because it strengthens its portfolio and promises strong returns in the future. Following the announcement, Pacton’s stock dipped from $0.54 on the opening of Tuesday’s trading session and reached a low of 0.47 on Wednesday before recovering past the $0.50 mark. The price of the stock at the time of this press was $0.51. The company expects the lease acquisitions to contribute towards better performance in the future.
Pacton Gold (PAC.V) (PACXF) Up Almost 500% in Past One-Year
Pacton Gold (PAC.V) (PACXF) Up Almost 500% in Past One-Year
Pacton Gold (TSX.V: PAC.V) (OTC: PACXF) stock has had a decent run over the past one-year or so. The stock is up over 70% in the last three months, over 90% year-to-date and almost 500% in past one-year. Despite such an impressive show, the stock doesn’t seem to be slowing down and has more to offer to the investors, i.e., it can still unlock more value for the investors. And, every now and then, the management proves that investors must continue their trust in the stock.
Pacton Gold, who has already acquired quite a few important properties on Western Australia’s Pilbara Mining Region, on Tuesday, announced entering into a deal to acquire the Yandicoogina and Boodalyerrie exploration licenses and mining leases from Gardner Mining Pty Ltd. The transaction gives Pacton two granted mining leases and three granted exploration licenses.
“The acquisition of the Yandicoogina and Boodalyerrie Gold Projects provides a significant increase in the scale of exposure to the Pilbara region both in relation to conglomerate and structurally controlled gold systems. The high-grade nature of structurally controlled gold mineralisation across an extensive strike length between the two Projects provides a compelling value proposition,” said Alec Pismiris – Interim President and CEO of Pacton Gold.
Presently, Pacton Gold controls the third largest land package in the Pilbara region. The well-funded company continues to grow its portfolio with accretive acquisition. Pacton’s land holdings have even attracted Eric Sprott, a Canadian billionaire businessman. Sprott owns 10.1% of the outstanding common shares in the company.
Involvement of Sprott is itself a big enough reason to go bullish on the company. And, Sprott has not only invested in Pacton, but also in other companies involved in Pilbara region. The billionaire investor is a major investor in Novo Resource as well.
“What has really attracted me to the Pilbara region is the involvement of Eric Sprott and Kirkland Lake, whose shareholders include heavies such as Van Eck, Fidelity and Oppenheimer. This is an early-stage discovery, but the involvement of a company like Kirkland Lake—which has been one of the top gold mining stories in recent years—speaks highly of its potential,” Jeb Handwerger – a long-time gold stock analyst and founder of Gold Stocks Trade, told INN.
Apart from Sprott, another reason to go bullish on Pacton is the encouraging outlook on the gold prices. Though the prices are struggling now, experts believe a bullish wave is around the corner. Over the last six months, the spot gold prices have dropped by 9% with the yellow metal trading around the $1200 level.
However, there are voices that the prices would soon inch towards the $1,370 mark. This prediction comes from Boris Mikanikrezai – precious metals analyst as Metal Bulletin, who cited excessively stretched gold’s spec positioning on the short side as an evidence.
“In the second half of the year, I expect a strong rally in gold prices and gold-mining equities as the macro backdrop for the precious metals complex should prove more positive,” said Mikanikrezai.
So, one can easily understand that when Pacton Gold’s (TSX.V: PAC.V) (OTC: PACXF) stock has gained so much during the period of falling gold prices, it should skyrocket when the prices are favorable.
**News Out** Guyana Goldstrike Inc. Reports High-Grade Results of 5.98 g/t and 7.45 g/t Gold from Paunch Area Trenches Toucan Ridge Area, Marudi Gold Project, Guyana, South America
July 6, 2018 / TheNewswire / Vancouver, Canada - Guyana Goldstrike Inc. (the "Company" or "Guyana Goldstrike") (GYA) GYNAF, +0.94% (1ZT) is pleased to announce that the geological team has commenced trenching, sampling and mapping at the Toucan Ridge area on its Marudi Gold Project ("Marudi" or the "Property") located in the Guiana Gold Belt, Guyana, South America.
The initial area of trenching on the western end of Toucan Ridge is located 1 km east of the Marudi North Zone. Two of the current trenches (TTR-18 series) are approximately 300 m upslope to the north of Toucan Creek where historic alluvial mining has been active for many years. Toucan Ridge continues for more than 1.75 km to the east of the first trenches; sites are planned along the length of the ridge where quartzite-metachert is exposed or interpreted to occur beneath transported overburden. The eastern part of Toucan Ridge is approximately 400 m south of the Paunch area and 350 m north of alluvial workings on Toucan Creek.
In May 2018, trenching samples from the Paunch area returned high-grade results of 5.98 g/t and 7.45 g/t gold.
Locke Goldsmith MSc., P.Eng., P.Geo., VP Exploration states "Trenching at Toucan Ridge is discovering lengthy exposures of quartzite-metachert, which is the host rock for gold mineralization. Therefore, this area has very good potential for additional discovery of gold and may be a priority drill target for our upcoming drill program."
X
See Also
Supreme Court Pick Puts Pressure on Democrats
As of July 4 a total of 725 meters has been trenched in all areas of the phase one trenching program, with 203 samples having been sent for analysis. Two samples have been collected from each interval along the base of the trench walls, one for panning to examine a heavy mineral concentrate for the presence of gold, and one for geochemical analysis of gold and trace elements. Sample lengths vary; many are 3 meters in length.
Toucan Ridge Exploration - Trenching Highlights
TTR-18-5
Located on the north slope of Toucan Ridge. Uncovered large quartzite-metachert angular fragments and boulders above saprolite derived from mafic metasediments. Quartz veinlets or quartzite with rusty / yellow / black oxidation was documented.
TTR-18-6
Sited on the south slope of Toucan Ridge approximately 50 m southwest of TTR-18-5. Uncovered quartzite-metachert outcrop in two locations. The southern quartzite-metachert interval is 6 m in length; black oxide, not magnetite, not hematite was documented.
TTR-18-7
Quartzite-metachert was uncovered over a length of 79 m in the southern end of the trench. The trench will be extended.
2012 location map showing drilling and trenching completed at Marudi by previous operators.
Click Image To View Full Size
Historical Trenching
Previous operators at Marudi reported 3,327.40 metres of trenching and assayed 1,069 samples with gold values assayed up to 11 g/t of gold. (source:D. Strickland P. Geo NI 43-101 Technical Report)(source:November 30)(source:2016)
Sampling and assaying
All samples collected during this program were delivered to Activation Laboratories Ltd. (Actlabs) located in Georgetown, Guyana for gold content by Fire Assay (FA). Actlabs is ISO 17025 accredited and/or certified to 9001: 2008. With 25+ years' experience, with full analytical laboratories that perform high quality analysis to many industries around the world.
Quality assurance / Quality control (QA/QC)
Actlabs is an ISO 9001:2008 qualified assayer that performs and makes available internal assaying controls. Certified blanks and standards are systematically used as part of Guyana Goldstrike's QA/QC program with one blank and standard inserted at every 20 sample intervals.
Property Geology
Gold mineralization at Marudi is regarded as being related to iron-formation-hosted gold ("IFG") deposits that occur in other cratonic greenstone belts around the world. These deposits can be remarkably long-lived with sizeable gold production. They have a strong association between gold and iron sulfide minerals, the presence of gold bearing quartz veins and structures, the occurrence of deposits in structurally complex terranes, and the absence of lead and zinc enrichment.
Examples of some existing IFG deposits are: the Homestake Mine, Lupin Mine, and Musselwhite Mine.
The Homestake Mine is located in South Dakota USA and was the largest and deepest gold mine in North America. It has reported production of 43.9 million ounces of gold (source:https) and was in production from 1878-2001.
The Lupin Mine located in Nunavut, Canada, no longer in production, produced approximately 3 million ounces of gold (source: http://www.kinross.com/news-and-investors/news-releases/press-release-details/2003/Suspension-of-Operations-at-the-Lupin-Mine/default.aspx).
The Mussellwhite mine has estimated reserves of 2.29 million ounces of gold (source:https) and is owned and operated by Goldcorp and will be in production until 2020.
About Guyana Goldstrike Inc.
Guyana Goldstrike Inc. is a Canadian based junior gold company focused on the exploration, development, and operation of the Marudi Gold Project in Guyana, South America.
www.guyanagoldstrike.com
About the Marudi Gold Project
The Company is developing the Marudi Gold Project located in Guyana, South America, the project is unique in that it has a 20-year mining license in good standing, all-season road access, infrastructure in place, with an established mining camp serviced by employees, service buildings, and a full-time mining manager. The Property has three known gold bearing areas, specifically the alluvial areas, the saprolite, and the underlying hard-rock.
There has been 42,000 metres of historic diamond drilling (141 holes) completed on the Project by prior operators. The Company has recently completed a mineral resource estimate on the Mazoa Hill zone containing 259,100 indicated gold ounces within 4,428,000 tonnes grading 1.8 grams/tonne (g/t) and 86,200 inferred gold ounces within 1,653,000 tonnes grading 1.60 grams/tonne (g/t). There exists excellent exploration upside through the development of previously identified mineralized bedrock targets on the Project.
For information concerning the mineral resource estimate and the Project, readers are encouraged to review "Technical Report: Marudi Property Mazoa Hill Mineral Resource Estimate", a technical report prepared for the Company by Global Mineral Resource Services and is available at http://www.guyanagoldstrike.com/images/pdf/43101_Report_Guyana_Goldstrike_Mazoa_Hill_Zone_Jan_2018.pdf and under the Company's profile on SEDAR www.sedar.com.
About Guyana
The Republic of Guyana is located in South America between Venezuela and Suriname. The country is English speaking and under British Common Law with a democratically-elected government. It has an established mining act and a rich history of gold production. In 2016, 690,000 ounces of gold was produced by operators mining in the country. The Fraser Institute's 2016 Annual Survey of Mining listed Guyana as the third best mining jurisdiction with regards to investment attractiveness in the Latin America and Caribbean Basin sub-group. The Guiana Shield is the geographic gold-hosting region, and is world-recognized as a premier gold region that is highly prospective, under-explored and has geological continuity with West Africa.* In 2016, two mines in Guyana declared the commencement of commercial production: the Aurora deposit (Guyana Goldfields) and the Karouni deposit (Troy Resources).
* Independent Technical and Environmental Review Karouni Gold Project - Guyana, Behre Dolbear Australia Pty Ltd, April 29, 2016
Qualified Person
Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and Exploration Manager for the Company, is a Qualified Person in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Goldsmith has reviewed and approved the scientific and technical content of this news release.
FOLLOW US:
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
Peter Berdusco
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, changes in exploration costs and government regulation in Guyana, status of artisanal mining activities and associated rights, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
Copyright (c) 2018 TheNewswire - All rights reserved.
LexaGene Holdings Inc. (OTCQB:LXXGF (TSXV:LXG) Unveils a Revolutionary Pathogen Detection System
LexaGene Holdings Inc. (OTCQB:LXXGF (TSXV:LXG) Unveils a Revolutionary Pathogen Detection System
LexaGene Holdings Inc. (OTCQB: LXXGF) (TSX-V:LXG) has unveiled a first of its kind Pathogen detection technology capable of detecting a variety of pathogens including E.coli and Staph. According to the biotechnology company, the new prototype is far more effective than any other system in use, and should go a long way in reducing incidences of foodborne illness outbreaks.
LexaGene’s Technology Capabilities
The new technology is specifically designed for healthcare providers as well as food safety officers given that it is capable of is analyzing six samples at a time while searching for over 22 pathogens. Unlike in the past where healthcare officials had to send specimens far away and wait for days to get results, LexaGene’s new technology promises results in about an hour.
The technology will not only be used to reduce chances of shipping contaminated items in the food industry but also provide doctors an easy way of diagnosing sick patients. Carried out tests have shown that the technology can be relied upon to detect and identify the presence of antibiotic-resistant bacteria. Healthcare providers should thus be able to treat patients with more targeted therapies while still in healthcare facilities.
LexaGene’s technology is a much easier and less expensive solution for detecting deadly bacteria compared to other solutions in use at the moment. The company is planning to demonstrate capabilities of the new technology, which has shown to have the potential of revolutionizing a number of multibillion-dollar industries including food safety, water quality monitoring and veterinary diagnostics as well as aquaculture pathogen surveillance market.
“Over the next several months, we will continue to optimize the performance of the instrument and equip it with reagents to detect more diseases such as Salmonella and Listeria. Once we finalize our pathogen-detection panel, we’ll begin processing samples to demonstrate our advantages over standard testing procedures,” said CEO Jack Regan.
Strategic collaborations
In addition, Lexagene has entered into a collaboration agreement with Stanford University School of Medicine. Under the terms of the agreement, the biotechnology company is to leverage a targeted sequencing technology developed in the laboratory of Dr. Hanlee Ji in combination with its Microfluidic instruments.
Integration of the two technologies should expand LexaGene’s technology capabilities allowing it to include cancer diagnostics and Next Generation Sequencing. The biotechnology has been aggressive in signing deals with collaborators as it looks to refine and optimize the technology’s capabilities.
The company has already entered into agreements with Texas A&M Veterinary Medical Diagnostics Laboratory and Ethos Veterinary Health. The two are to supply the biotechnology company with Canine urine samples that are to be used for testing using the company’s LX6 prototype for more effective pathogen detection
The samples should go a long way in helping the company’s assays as well as optimize the LX6 prototype. Working with collaborators from different geographic regions should allow the company to gain access to adequate representation of diseases from different climates.
The biotechnology company remains confident that the technology will soon be the world’s first easy-to-use open access rapid pathogen detection system.
LexaGene Holdings Inc. (OTCQB:LXXGF (TSXV:LXG) Unveils Better Technology For Combating Salmonella Crisise
The Food and Drug Admisntartion has issued mandatory recall orders for Kratom containing products amidst concerns they triggered a large outbreak of Salmonellosis. The recall essentially paints a clear picture of what LexaGene Holdings Inc. (OTCQB: LXXGF) (TSX-V:LXG)’s newly developed pathogen detection technology could play in future, in the identification of such deadly bacteria.
Salmonella Crisis
The FDA says after conducting a months-long investigation, it discovered high rates of Salmonella contamination in Kratom products. Food items contaminated with Salmonella is not a new phenomenon in the U.S. However, the primary concern is the amount of time it takes to identify the bacteria in items before they are shipped to consumers.
Early in the year, the U.S Centers for disease Control and Prevention identified an outbreak of illnesses due to salmonella. Investigations conducted by state and local health departments in coordination with the CDC found that a high proportion of ill people had consumed Kratom products either as capsules powders or herbal medicines.
Most Kratom that finds its way into the United States comes from Southeast Asia where it is grown and processed in problematic conditions that enhance the chances of widespread contamination with a foodborne pathogen. The Salmonella problem with Kratom has been ongoing for a year because of a lack of a clear identification mechanism for pathogens.
Lexagene Pathogen Detection Technology
In comes Lexagene, which has developed a first of its kind pathogen detection technology capable of over 22 pathogens in under an hour including some of the most dangerous bacteria. The Biotechnology Company believes its easier and less expensive technology is a better bacteria detection solution given that it can identify E.coli in addition to salmonella.
The technology is specifically designed for healthcare providers as well as food safety officers as it can process up to six samples at a time and provide results in under an hour. The biotechnology company is planning to demonstrate the prototype first hand so that people can appreciate its impact on the food industry
“Over the next several months, we will continue to optimize the performance of the instrument and equip it with reagents to detect more diseases such as Salmonella and Listeria. Once we finalize our pathogen-detection panel, we’ll begin processing samples to demonstrate our advantages over standard testing procedures,” said CEO Jack Regan.
Market Opportunity
Lexagene expects the technology to reduce chances of shipping contaminated food items significantly. In addition, it should provide the company with exposure to the $13.5 billion food safety industry that has been struggling with pathogens for decades.
The biotechnology company also plans to apply the technology to help healthcare providers diagnose patients. Currently, health care providers collect samples from patients and ship them to an offsite laboratory, a process that usually takes days to send and receive results.
With the use of Lexagene, technology healthcare providers will now be able to identify the presence of antibiotic resistance bacteria in under an hour. The providers will also be able to treat patients with more targeted therapies while they are still in the facility. The biotechnology company expects the technology to be the world’s first easy-to-use open access rapid pathogen detection system.