Lexaria Bioscience Corp. announces it is arranging a non-brokered private placement for gross proceeds of approximately US$1 million.
Lexaria Bioscience Corp. (CSE:LXX, OTC:LXRP) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms announces it is arranging a non-brokered private placement for gross proceeds of approximately US$1 million (the “Financing”).
The Financing is comprised of units (“Units”) being issued at a price of US$0.45 per Unit. Each Unit shall consist of one common share of the Company (a “Share”) and one Share purchase warrant (each Share purchase warrant, a “Warrant”). Each Warrant shall entitle the holder to acquire one additional Share (the “Warrant Share”) for a period of two years from the date of issue (the “Expiry Date”). The Warrants shall be exercisable at a price of US$0.80 per Warrant Share during the first 12 months of issuance and thereafter at a price of US$1.20 per Warrant Share until the Expiry Date.
The net proceeds of the Financing will be used to accelerate DehydraTECHTM-based technology and formulation development; for increased intellectual property and patent pursuit; and for general corporate purposes.
Earlier this year, Lexaria moved into its new head office with a Health Canada licensed research and development laboratory that is now conducting world-leading research into drug delivery methods and improvements. Among many other investigations, DehydraTECH version 2.0 is being investigated for limited commercial release in 2020, continuing Lexaria’s drive to offer the world’s leading drug delivery platforms.
Existing DehydraTECH has been tested as offering 475% more CBD into animal blood than generic industry control formulations and DehydraTECH version 2.0 has been tested at delivering 811% more CBD into blood than the same controls.
Of even greater interest is the propensity of DehydraTECH version 2.0 to cross the blood-brain-barrier, where animal testing evidenced 1,937% more CBD into brain tissue compared to generic industry control formulations; and 487% more than traditional DehydraTECH. The ability to effectively deliver drugs to the brain is of keen interest to developers of drugs targeting the Central Nervous System (“CNS”). CNS blood vessels and the endothelial cells within are unique in that they prevent more than 90% of small-molecule drugs from passing between the cells. It is known that molecules that are soluble in blood and lipids are capable of dissolving into a cell’s lipid membrane.
Lexaria will continue its work toward developing its patented technology including specifically for effectiveness in crossing the blood brain barrier.
The Financing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities. All securities issued will be subject to applicable hold periods in accordance with Canadian securities laws and will be “restricted securities” as defined under the securities laws of the United States.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
Lexaria Bioscience Corp. is a global innovator in drug delivery platforms. Its patented DehydraTECH(TM) drug delivery technology changes the way Active Pharmaceutical Ingredients enter the bloodstream, promoting healthier ingestion methods, lower overall dosing and higher effectiveness for lipophilic active molecules. DehydraTECH increases bio-absorption; reduces time of onset; and masks unwanted tastes for orally administered bioactive molecules including cannabinoids, vitamins, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine and other molecules. Lexaria has licensed DehydraTECH to multiple companies in the cannabis industry for use in cannabinoid beverages, edibles and oral products; and to a world-leading tobacco producer for the development of smokeless, oral-based nicotine products. Lexaria operates a licensed in-house research laboratory and holds a robust intellectual property portfolio with 16 patents granted and over 60 patents pending worldwide.
For regular updates, connect with Lexaria on Twitter (https://twitter.com/lexariacorp)
and on Facebook https://www.facebook.com/lexariabioscience/
FOR FURTHER INFORMATION PLEASE CONTACT:
Lexaria Bioscience Corp.
Alex Blanchard, Communications Manager
(250) 765-6424 ext. 202
This release includes forward-looking statements. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements, including but not limited to: that any additional patent protection will be realized or that patent achievements will deliver material results. Such forward-looking statements are estimates reflecting the Company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation and regulatory approvals, managing and maintaining growth, the effect of adverse publicity, litigation, competition, scientific discovery, the patent application and approval process and other factors which may be identified from time to time in the Company’s public announcements and filings. There is no assurance that existing capital is sufficient for the Company’s needs or that it will be able to raise additional capital. There is no assurance the Company will be capable of developing, marketing, licensing, or selling edible products containing nicotine or any other active ingredient. There is no assurance that any planned corporate activity, scientific research or study, business venture, letter of intent, technology licensing pursuit, patent application or allowance, consumer study or any initiative will be pursued, or if pursued, will be successful or completed. There is no assurance that any of Lexaria’s postulated uses, benefits, or advantages for the patented and patent-pending technology will in fact be realized in any manner or in any part. No statement herein has been evaluated by the Food and Drug Administration (FDA). Lexaria-associated products are not intended to diagnose, treat, cure or prevent any disease.