Lexaria Corp (OTCMKTS:LXRP) Sunday Stock Spotlight 0 BY BRYAN CROWE ON NOVEMBER 23, 2014 MICRO CAP INSIDER, STREET WATCH, UNCATEGORIZED
Lexaria Corp (OTCMKTS:LXRP) is a fascinating story developing in small caps; the stock is moving steadily upwards on accelerating volume after it hit a recent low of $0.045 in early November. The move is welcome to shareholders who have endured months of downward drift since LXRP highs of $0.785 back in March.
LXRP absolutely exploded earlier this year off its $0.003 low’s to highs of $0.785 per share after the Company entered the red hot Cannabis sector when they announced a three year Joint Venture Agreement (“JV”) with Enertopia Corp.
In September the JV reported that they had submitted the Health Canada MMPR Licensed Producer application in July to produce 10,000kg of Medical Marihuana per year under its Licensed Producer application. The Company is seeking a Ready to Build letter from Health Canada.
Lexaria has been trading on the bb’s for some time; the Company was initially registered in Nevada in 2005 to explore and develop oil and gas assets in low-risk areas of North America. The Company still owns significant oil production in Mississippi, producing oil from wells at the Belmont Lake oil field.
LXRP still receives revenues from these wells reporting $463,798 in revenues for the 9 months ended July 1, 2014. The Company says they have earned a total of $3.5 million oil production revenues since their inception.
In November LXRP acquired 51% of PoViva Corp. PoViva literally means “Taking in Life” PoViva uses a patent pending process to bind active CBD ingredients with a lipid, allowing for a more efficient and comforting delivery of the CBD than competing products that do not have the benefit of our patent-pending process.
PoViva owns two patents pending that govern the process used to infuse the CBD into food products, and both patents pending are part of the acquisition. An initial cash payment has been made to PoViva and Lexaria currently has sufficient cash resources to completely fund and launch the acquisition. Lexaria does not require any equity financing to complete the transaction.
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Later in November LXRP issued a letter to shareholders in which they announced their plan to launch a line of premium products relying on their patent pending CBD-infusion process, to bring CBD’s into the mainstream. Because CBD’s do not have psychoactive properties we expect our products to appeal to the widest possible customer base. Initially we will focus our sales efforts across the continental USA.
Lexaria has commissioned a new website for the effort and plans to begin working on traditional retail sales channels and will work to continually develop those “bricks and mortar” sales methods. Also early in 2015 we hope to add our next CBD-based product line.
Conclusion: LXRP is slowly trending up on accelerating volume; when LXRP moves investors pay attention; back in March LXRP went parabolic running from sub pennies to $0.785 a share. The stock collapsed since those heady days when pot stocks ruled the bb’s; it all ended when CANN got halted and an entire sector lost the wind in its sails.
Pot stocks are beginning to heat up again as Marijuana was legalized in Alaska, Oregon and Washington D.C and as they do LXRP is one to watch; the Company is led by CEO Chris Bunker who seems to have a good plan moving forward.
Since they entered the sector LXRP has managed to raise $1.5 million and currently has a strong cash position of $550,000 in the treasury. Mr. Bunker’s vision is to have multiple growing facilities across Canada in multiple jurastictions to mitigate the risks associated with this kind of operation. To this end the Company has announced the JV with Enertopia Corp. who already has 3 licensed facilities in Canada. LXRP seems to be making all the right moves and the stock is rising as investors accumulate shares betting LXRP can regain some of its previous luster.
Disclosure: we hold no position in LXRP either long or short and we have not been compensated for this article.
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