Lexaria Bioscience Corp (LEXX)

[Shawking]

Ted Ohashi May 30
https://4495825a-d729-4d8f-ade8-e78f828e1c8d.usrfiles.com/ugd/449582_3230d4f73e0948dc8f8ec92572714bad.pdf
Here are some thoughts on Lexaria Bioscience (NASDAQ: LEXX) (NASDAQ: LEXXW). Blood pressure is equal to cardiac output times systemic vascular resistance. In other words, the pressure the
blood is exerting on the walls of your artery is equivalent to cardiac output (the amount of blood being
pushed out of your left ventricle over time) multiplied by the systemic vascular resistance or the resistance your arterials are putting on the blood behind it. This is important because your arterials have
smooth muscle wrapped around them and the smooth muscle can either constrict or dilate. If the
smooth muscle constricts, it makes is harder for the blood to pass through, or, it increases blood pressure. On the other hand, if it dilates, there is more room for the blood to pass through and the blood
pressure declines. This means that all the antihypertensive drugs we use to treat blood pressure either
reduces the cardiac output or it reduces systemic vascular resistance.
Lexaria’s human clinical study HYPER-H21-2 confirmed DehydraTECH™-processed cannabidiol
(CBD) reduced arterial stiffness. This finding potentially broadened its application to the treatment of
cardiovascular and other disease states beyond hypertension. DehydraTECH™ has already shown
tremendous promise in lowering blood pressure but if it can actually contribute to the treatment of the
causes of high blood pressure or other diseases, that would be a significantly more important, valuableadded. President John Docherty called it a “major discovery.” He went on to say, "We know that increased arterial stiffness is correlated with many serious and life-threatening diseases affecting people
worldwide, and we are optimistic that our latest findings could have future widespread implications for
promotion of improved human health and wellness."
“The efficacy of blood pressure treatment and differences in efficacy between different types of antihypertensive agents is strongly correlated with measuring arterial stiffness…DehydraTECH-CBD from
study HYPER-H21-2 appear to have been at least partially due to improvements in arterial stiffness.”
“To have decreased arterial stiffness to the degree demonstrated in our present study after only a
single day of dosing with DehydraTECH-CBD is quite remarkable and will be more thoroughly investigated in Lexaria's upcoming 6-week hypertension study HYPER-H21-4, where multiple doses over this
period are expected to demonstrate additional benefits against hypertension and arterial stiffness.”
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An article by Rekha Mankad, M.D. of the Mayo Clinic confirms this information in a slightly different
way. Blood pressure readings are in two numbers. The top number is the systolic pressure or the
highest pressure the heart exerts while beating and the second number is the diastolic pressure or the
pressure in the arteries between heart beats. The systolic pressure (say 120) minus the diastolic pressure (say 80) is the pulse pressure (120-80=) 40. Generally, a pulse pressure over 40 is considered
unhealthy. A pulse pressure of over 60 is considered a risk factor for cardiovascular disease. Stiffness
of the aorta is the leading cause of higher blood pressure and is thought to contribute to stiffening of
the arteries. Treating high blood pressure usually means reducing pulse pressure.
What does this tell us? It means the ability of DehydraTECH-CBD as first detected in HYPER-H21-2
to lower blood pressure was due, in part, to improvements in arterial stiffness. This will be one important
finding to look for when we see the results from hypertension study HYPER-H21-4 that is currently
underway. If there are additional signs of reductions in arterial stiffness the market response could be
explosive. We could see preliminary results from HYPER-H21-4 as early as late July and certainly
almost complete results by early fall.
The hypertension market is valued at $28 billion per year and is expected to continue growing as one
of the world's top health problems. Geographically, some of the highest rates of growth are expected
in more recently industrialized nations such as China and India. Over 1.1 billion people worldwide suffer from hypertension - elevated blood pressure. Hypertension is a major risk factor for cardiovascular
and cerebrovascular disease, and accounts for approximately 45% of cardiovascular disease mortality
and morbidity worldwide. Drugs focused on blood pressure and related conditions such as Lipitor and
Plavix are some of the highest selling drugs in the world. There are several hypertension drugs that
each generate $1 billion per year or more in revenue.
Finally, in my latest interview with CEO Chris Bunka, we discussed the growing potential for a significant commercial agreement. The company has been in discussions with more high profile businesses
than ever before in LEXX’s history. If one of these results in a commercial contract, it could also help
get the stock price moving up towards a valuation that some multiple of the current price that I believe
is more realistic.
Conclusion: Although the cannabis stocks are trading in a volatile and uncertain fashion, the type of
news that LEXX is capable of generating over the next few months can move the stock higher against
the general trend.
Along with many
stocks, LEXX is
trading at an excessively low
level. The current
market cap
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according to Yahoo Finance is $12.3 million. For a company with multiple prospects that offer the potential for a breakthrough market re-evaluation, I consider this an excessive undervaluation and an
opportunity waiting to happen