Lexaria Bioscience Corp (LEXX)

[Shawking]

Ted Ohashi still bullish on Lexaria. Pg. 15
https://4495825a-d729-4d8f-ade8-e78f828e1c8d.usrfiles.com/ugd/449582_bc6d1a0b6446483797e254f3c5ebb0c3.pdf

One of the reasons I am so enthusiastic about the prospects for Lexaria Bioscience (NASDAQ:
LEXX) (NASDAQ: LEXXW) is they are conducting a wide range of tests of its DehydraTECH™ technology. In the six years or so that I have been following LEXX, DehydraTECH™ has proven to be a very
robust technology and has consistently returned positive results. In the past year, with LEXX listed on the
NASDAQ, we have seen the market respond with some vigor to positive results from testing. However,
as the market assessed the incremental increase in market cap with each result, it was not able to accumulate that value over time. As a result, since the NASDAQ listing, the shares have been up until the
stock price dropped during tax loss selling at year end.
Looking ahead, I think as each prospective application is supported by more data, the market will place a
cumulative valuation on the shares. In addition, we shouldn’t ignore the possibility of a significant breakthrough result that might come at any time.
Here is a summary of the tests completed in 2021 and scheduled for 2022.
16
2021/2022 Study Program
? HYPER-A21-1 - Rodent study completed (n=10) demonstrating significant enhancement in CBD delivery using DehydraTECH - Up to 2,178% more CBD delivered into bloodstream and up to 1,737%
more CBD delivered into brain tissue.
? HYPER-A21-2 - Rodent study completed (n=10) demonstrating strongest CBD absorption results
ever recorded using DehydraTECH - New formulation delivers up to 2,708% more CBD into bloodstream
? HYPER-H21-1 – Human clinical study (n=24) evidencing a rapid and sustained drop in blood pressure
with DehydraTECH-CBD and excellent tolerability
? HYPER-H21-2 - Human clinical study (n=16) Hypoxic Pulmonary Vasoconstriction study; evidences
up to a remarkable 23% decrease in blood pressure with patented DehydraTECH-CBD relative to
placebo and confirms DehydraTECH-CBD reduces arterial stiffness
? VIRAL-C21-3 - In vitro screening assay completed using a primate cell line, VERO-E6, determined
remdesivir and ebastine processed with DehydraTECH were effective at inhibiting the COVID-19
SARS-CoV-2 virus
? VIRAL-A20-2 - Rodent study completed (n=40) DehydraTECH enables up to three-fold increase in
oral delivery of antiviral drugs, Remdesivir and Ebastine
? VIRAL-MC21-1 - Successfully confirmed Lexaria's molecular characterization study objectives,
demonstrating DehydraTECH processing and formulation technology does not create a covalently
bonded new molecular entity (NME) and that each drug tested remained stable and did not undergo
change in chemical structure. These findings are strongly supportive of accelerated regulatory filings
such as the 505(b)(2) pathway permitted by the Food and Drug Administration (FDA) and other international regulators
? VIRAL-A20-3 - Rodent PK study completed (n=20) demonstrating significant enhancement in antiviral drug delivery using DehydraTECH-enabled Colchicine. Possible benefits for treating SARS-CoV2/COVID-19 and mRNA vaccine side effects
? NIC-A21-1 - DehydraTECH-oral nicotine delivery peaked in bloodstream 10x to 20x faster than controls and peak levels achieved were up to 10x higher than controls
The following studies are part of approximately 12 applied R&D programs planned for 2022 (tentative start
dates are included):
? HOR-A22-1: April 2022. This PK study will evaluate the ability of DehydraTECH to enhance the delivery characteristics of estrogen. Estrogen helps to control the menstrual cycle but also controls cholesterol and protects bone health. The hormone replacement market is estimated at $46.5 billion in
2027.
? DEM-A22-1: July 2022. This efficacy study will evaluate DehydraTECH-CBD with and without nicotine
for the potential treatment of dementia. Alzheimer's disease is the most common form of dementia
and accounts for at least 60% of all cases, and nicotine is already showing promising results related
to Alzheimer's treatment. An estimated 55 million people worldwide are currently affected by dementia, with 78 million expected to be living with some form of dementia by 2030. The dementia drug
treatment market is estimated at $19.6 billion in 2026.
17
? RHEUM-A22-1: October 2022. This efficacy study will focus on the ability of DehydraTECH-CBD to
potentially affect treatment of rheumatoid disease. Given CBD's postulated efficacy related to inflammation, Lexaria will explore a possible role for CBD in this area of investigation. Rheumatic diseases
are autoimmune and inflammatory diseases that cause the immune system to attack joints, bones,
muscles and organs. There are over 100 rheumatic diseases including Fibromyalgia, Lupus, Osteoarthritis, Rheumatoid Arthritis and more. The Rheumatoid Arthritis therapeutics market alone is expected to be over $30 billion per year by 2025.
? DIAB-A22-1: November, 2022. This efficacy study will explore the ability of DehydraTECH-CBD to
potentially affect treatment of diabetes. Diabetes prevents the body from making enough insulin, r
esulting in abnormal blood sugar levels. Diabetes is the 7
th largest cause of death in the US and there
is currently no cure. Investigation of CBD related to diabetes is in early stages, though there are
some areas of ongoing investigation. CBD has shown some ability to reduce the incidence of diabetes
in mice. The prescription drug market used to treat diabetes is expected to be a $77.9 billion global
market in 2024.
Conclusion: with a patented technology that improves the way active pharmaceutical ingredients enter
the bloodstream and its listing on the NASDAQ early this year, Lexaria Bioscience (NASDAQ: LEXX,
LEXXW) has successfully disassociated itself from
the cannabis industry. Thus,
while the cannabis
group is down
sharply since February 2021, LEXX has been able to maintain its value in that time frame. Of course, cannabinoids remain
important to LEXX but now as an active pharmaceutical ingredient. To give you a sense of the breadth of
areas being investigated, consider the following list: dementia (Alzheimer’s), diabetes, heart disease, hormone replacement, hypertension, Lupus, oral nicotine, Osteoarthritis, and rheumatoid diseases (Fibromyalgia, Rheumatoid Arthritis). The work is fully funded through all of 2022 and the first half of 2023. As a
result, I believe LEXX and LEXXW holders will have several event related positive moves in the market
in 2022. I suggest every growth portfolio should earn LEXX and/or LEXXW