Lexaria Biotech Uplisting Has Made Progress!
Let me just say that before we pass judgement on the S1 Form filed by Lexaria, let's first wait to hear his explanation. Chris has been very good about doing interviews (typically on video), and in those interviews, investors learn a great deal about what the company is doing. In my opinion, CEO's rarely detail all that is going on, but Chris has so far been better than most.
So lets break this all down. First, Chris made it very clear he is serious about up-listing, and the S1 Form is the first step. Also, if I remember correctly (I would need to look this up to be certain) the S1 Form is required for a direct listing on a major exchange. A direct listing (if that is what he intends to do) by-passes the banks and brokers and pretty much allows a company to set their own share price. Of course, the market will eventually determine share value, but the track record for direct listings is actually pretty good.
Second, we should look at the value of the company we own. Lexaria is now a major shareholder in Hill Street Brewery, and should that company be bought out by a major beverage company (I remind everyone that cannabis drinks are a hot item right now and every major beverage company appears to be trying to find a way into this business. So, what better way to enter this market then by buying a company with an established product line already in place? Furthermore, Lexaria would receive a windfall should such a sale take place). Lexaria will also receive revenue from Hill Street sales. This means Lexaria wins regardless of what happens. In effect, Lexaria is a partner with Hill Street, and that partnership comes with a product line that continues to grow.
Third, we should never lose sight of the fact that Lexaria itself might be a buy out target --- particularly, in my opinion, from big pharma. I suggest such a buy out would be highly profitable for those invested. I have been a shareholder in small companies that were bought out, and received many times what I invested.
Fourth, to qualify for a major exchange, a firm must have liquidity. This capital raise provides it.
Fifth, companies with THC product lines have not been successful at up-listing to major exchanges. By selling Lexaria's beverage division, Lexaria benefits from beverage division, yet frees itself of issues surrounding THC product lines. Hill Street likely can expand their product line much faster than Lexaria, and can market their products without cost to us.
Finally, we need to know what the funds might be used for, and will Chris go for the full amount mentioned in the filing. All this information will likely be explained in Chris Bunka's next video interview. I suggest Chris will use some of these funds to finish research proving the benefits of medical use.
Right now, these words are just my thoughts on what may be going on. I suggest these words are merely speculation. We wait for Chris to clarify the situation before making decisions. This end of the market is risky, and many penny stock CEO's prove not to have investor's best interest at heart.
AI
