PRESSRELEASE TODAY; Lexaria Proprietary DehydraTECH-Enabled CBD Powders Business Growing Faster than Expected
Growth now expected to exceed 500% from fiscal Q4 2020 to fiscal Q1 2021
Kelowna, British Columbia – October 22, 2020 – Lexaria Bioscience Corp. (OTCQX: LXRP) (CSE: LXX) (the “Company” or “Lexaria”), a global innovator in oral drug delivery platforms, is pleased to announce that it is exceeding expectations for volume of servings of its patented DehydraTECHTM enabled CBD powders, to be processed during the Company’s fiscal Q1 2021 ending November 30, 2020.
On September 23 2020, Lexaria announced it had received purchase order commitments for the current quarter (September 1 – November 30) for approximately 4.4 million CBD servings of DehydraTECH-enabled CBD powders. Processing rates have exceeded expectations: as of October 21, Lexaria has already processed approximately 4.2 million servings and now has confirmed purchase orders to process a total of over 8.0 million servings during the current quarter.
The new estimate represents over 500% volume growth from approximately 1.2 million CBD servings processed in the Company’s fiscal Q4 ended August 31, 2020, (all figures unaudited) which itself reflected growth of 71% from fiscal Q3, 2020. A serving generally ranges from 10mg to 25mg of CBD each, utilizing the Company’s DehydraTECH patented processes.
If existing activities and conditions continue, Lexaria’s expectations to produce at least 56 million servings during the calendar year 2021, driven by the communications of existing customers, may prove to be conservative. These indicative orders do not include any additional demand from prospective future clients.
Lexaria’s business divisions includes both technology licensing wherein corporate licensees implement DehydraTECH under license within their own facilities under royalty agreements and which generate our most profitable revenue streams; and also B2B operations where clients purchase pre-processed DehydraTECH CBD-powders manufactured at a Lexaria-contracted GMP-certified food facility for shipment back to the client for integration into their final product formats. Fees payable to Lexaria include a combination of manufacturing charges as well as royalty and trademark fees.
The Company continues to caution that it cannot control the ability of third parties to fulfil their own business expectations and, as such, does not express any opinion on the ability of its corporate customers to meet their own targets.
About Lexaria
Lexaria Bioscience Corp.’s (OTCQX: LXRP, CSE: LXX) proprietary drug delivery technology, DehydraTECH™, improves the way active pharmaceutical ingredients (APIs) enter the bloodstream by promoting healthier oral ingestion methods and increasing the effectiveness of fat-soluble active molecules, thereby lowering overall dosing. The Company’s technology can be applied to many different ingestible product formats, including foods, beverages, oral suspensions, tablets, and capsules. DehydraTECH increases bio-absorption by up to 5-10x, reduces time of onset from 1 - 2 hours to minutes, and masks unwanted tastes for orally administered bioactive molecules, including anti-virals, cannabinoids, vitamins, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine, and other molecules. Lexaria has licensed DehydraTECH to multiple companies including a world-leading tobacco producer for the development of smokeless, oral-based nicotine products and for use in industries that produce cannabinoid beverages, edibles, and oral products. Lexaria operates a licensed in-house research laboratory and holds a robust intellectual property portfolio with 18 patents granted and approximately 60 patents pending worldwide. For more information, please visit www.lexariabioscience.com.
INVESTOR CONTACT:
ir@lexariabioscience.com
Phone: 866-221-3341
