Lexaria Bioscience (LXRP) is Porfectly-Positioned as Hemp Becomes Mainstream
Lexaria Bioscience Corp (OTCMKTS:LXRP) to start the mainstreaming of hemp, by improving its benefit right when the benefit becomes clear.
By Matthew Briar
Feb 6, 2017 6:34:07 AM PST | No Comment(s) - Post a Comment Rating
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NU.V $0.14 -$0.01 -3.57% LXRP $0.52 $0.00 0.00%
Contrary to popular belief, hemp and marijuana aren't the same thing. The difference between hemp and marijuana is primarily the amount of tetrahydrocannabinol (or THC), or is the primary psychoactive chemical in marijuana. Hemp contains less than 0.5% THC, while marijuana consists of anywhere from 6 % to 20% (and sometimes more) THC.
Granted, it's not always a fully-appreciated distinction. Even though the federal government accurately recognizes that hemp and marijuana are only variants of the same species, Cannabis sativa, the DEA doesn't necessarily enforce its drug laws as such. For legitimate medical purposes, the government is perfectly willing to leave the matter alone.
The good news is, governments - federal as well as state - are finally starting to figure out the distinct differences between marijuana and hemp, and that bodes well for a young and hungry startup called Lexaria Bioscience Corp (OTCMKTS:LXRP).
In simplest terms, Lexaria Bioscience is focused on improving the bioavailability of the healthy stuff found in food, supplements, vitamins, and yes, even in cannabis and hemp.
You may not know it, but the bulk of the vitamins, anti-oxidants, minerals, amino acids and all the other desirable components of the pills you take and foods you eat don't actually get absorbed into your body. Sometimes as much as 96% of the ingredient in question isn't extracted, but rather passes right through. Not only is it a waste of time and money, it's a bit of a hassle to swallow a big capsule (or several capsules) for little to no benefit.
Lexaria Bioscience changes all of this. Simply put, Lexaria has developed and patented a proprietary technology that makes valuable molecules taste better and absorb better in the digestive tract. This platform could be applied to a variety of nutritional and health-oriented favorites, but Lexaria is starting with hemp as it's the most underserved market and arguably the biggest growth opportunity.
Hemp seeds (which are technically a nut and are also known as "hemp hearts") are rich in healthy fats, protein, and minerals. They promote heart health and skin health, and are an excellent source of nutrition. Specifically, they contain high amounts of the amino acid arginine, which is used to produce nitric oxide in the body Nitric oxide is a gas molecule that makes the blood vessels dilate and relax, leading to lowered blood pressure and a reduced risk of heart disease. Hemp seeds are a also great source of polyunsaturated and essential fatty acids. They have about a 3:1 ratio of omega-6 to omega-3, which is considered in the optimal range.
Studies have shown using hemp seed oil may improve blood levels of essential fatty acids, which fights eczema. It may also relieve dry skin and decrease itchiness.
The key, however, is the science. Lexaria Bioscience is able to combine cannabinoids with lipids -- or fatty acids -- at the molecular level. It matters, as the human endocannabinoid system is itself lipid based, making this format the easiest and most effective means of introducing the medicinal and health benefits of hemp and hemp oil.
Its business model is two-fold. It licenses its hemp-infused oil to distributors of cannabis edibles, and it makes its own retail brand of hemp-based products. Its brand names are ViPova(tm) and Lexaria Energy Foods. The former is a brand of teas, coffee and hot chocolate, and the latter (so far) is a mix of protein bars and the like.
Indeed, it's also garnered interest from business partners. In November, Lexaria Bioscience and NeutriSci International Inc (CVE:NU) jointly announced they were entering a joint venture that would utilize Lexaria Bioscience's proprietary infusion platform and tap into NeutriSci International's existing distribution network to create and market a whole new supplement product line. In January, the duo announced it had finalized new supplement that is done testing and will soon be available for consumers. The tablet (a 'melt', technically) is a combination of pterostilbene and cannabidiol, offering a double-barreled benefit to the health-conscious.
It's exciting simply because NeutriSci International has an established name and marketing channel, while Lexaria Bioscience has the science that makes hemp oil far more functional.
And that's just one partner/venue. Lexaria's already got other revenue lined up. See, it's been establishing partnerships since May of this year to provide its hemp-oil-infused food platform to distributors/retailers and edibles suppliers. Some of the details on some of these deals weren't disclosed. On others, they were, and the opportunity for several million dollars in annual royalty revenue is already on the table. (Royalty revenue is easy, high-margin revenue.) And that's before Lexaria could turn up the heat with the confidence of the patent it was awarded late last year... the patent on the process used to improve the absorbability of its hemp oil. With that protection in hand, the company can really turn up the heat.
At stake is a piece of the $6 billion edible cannabis market, and that's just one market. As was noted, the same know-how has an application in improving the absorption potential of medicines, health supplements, painkillers, nicotine (for smoking cessation), and more.
Investors looking for a speculative off-the-radar idea that could make it big may want to take a long hard look at LXRP.
For more on Lexaria, visit the company website here.
