Lexaria Looks to Validate Breakthrough Technology

WHITEFISH, MT / ACCESSWIRE / May 27, 2015 / The medical cannabis industry has
grown at a 16.2% compound annual growth rate between 2009 and 2014 to reach $2
billion in revenue, according to IBISWorld,
driven by state legalization initiatives and research conducted by companies
like GW Pharmaceutical plc (NASDAQ: GWPH). GreenWave
Advisors believes that figure could reach $35 billion by 2020 if all 50
states legalized the drug and the federal government ended prohibition.

Lexaria Corp. (OTCQB:
LXRP) (CSE: LXX), a food sciences company focused on the delivery of
cannabinoid compounds using its proprietary infusion technology, plans to
capitalize on the rapidly growing industry by improving the bioavailability of medical
cannabis. In addition, it was only weeks ago that Lexaria appointed a new company
president, Mr John Docherty, who has an extensive and accomplished background
from the pharmaceutical industry. Lexaria seems to be taking bona fide steps to
position itself as a leading technology force within the industry.

Importance of Bioavailability

Many cannabis users know that
smokable and edible forms of the drug produce completely different experiences.
In a 2005 study,
researchers found that smoking cannabis resulted in 30% bioavailability of THC,
while oral consumption resulted in just 4% to 12% bioavailability. A separate 2012 study found that the
bioavailability of CBD was around 31% when smoked and just 6% when taken
orally.

Researchers believe that the difference between
smoked and oral consumption of the drug stem from the so-called first-pass
effect – a phenomenon of drug metabolism whereby the concentration of a drug is
greatly reduced before it reaches systemic circulation. Often times, the
fraction of the drug lost during the absorption process occurs in the liver and
gut wall where the drug is metabolized before reaching the rest of the body.

Lexaria’s patent-pending process
actively binds CBD ingredients with a lipid in order to enable a more efficient
delivery and absorption of CBDs and other cannabinoids when consumed orally
versus being smoked. In May, the company announced that Absorption Systems LP
would begin third-party in vitro
tests using a human intestinal tissue model to evaluate the CBD permeability of
its technology that infuses cannabinoid compounds within lipids.

Significant Potential

Lexaria’s technology could disrupt
the entire legal cannabis market if these lab tests show that its technology
delivers a bioavailability rate near that of smoking. As CEO Chris Bunka said
in a recent
interview with CannabisFN on the topic, “Why would any medical marijuana
patient contemplate smoking ever again if we can actually deliver as much
active ingredient with no harmful effects, as associated with smoking?”

Medical marijuana patients that need
the higher bioavailability of smoking marijuana to alleviate their pain
symptoms could use the technology to avoid smoking, while the general public
could benefit from wider bioavailability of CBD. The company’s existing product
line – including ViPova teas – address this mass market with a product that’s
easily consumed, while management plans to launch additional food and beverage
products to consumers over the coming quarters.

And while Lexaria’s current focus
is clearly on developing food based delivery mechanisms for CBD-fortified
products, Bunka reminded CannabisFN that the patent applications have been
filed for both CBD and for THC. If the third-party in vitro lab test results are strongly positive, the potential for
this technology to be disruptive across the industry is apparent.

Earlier this year, the company
hired a National Sales and Compliance Strategist to spearhead its U.S.
sales operations and launched its initial Tea Party campaign to encourage
grassroots growth. A channel
partner program was also established to help facilitate the build-out of
distribution channels throughout the country by working with exclusive retail
operations or distributors across a number of different markets and verticals.

Near-term Catalysts

Lexaria expects to begin testing of
its technology in the near future and will report results when they are
available within the next three or four months. If successful, the testing
could provide a significant catalyst for the stock given the potential within
the cannabis market. 

It is significant to note the time
period in which their trials will be conducted, unlike a company that is taking
a path to commercialization via FDA clinical trials (which can and do take many
years to complete), Lexaria has chosen to go down a path where testing results
will be turned around in a matter of months. 

If proven effective, there should
also be significant interest in the technology on the part of third party
manufacturers, as the amount of THC and CBD’s that are needed to produce the
same effect in edibles will be diminished. 

Investors in the nutrition and
supplements industry, including Forever Green Worldwide Corp. (OTCQB: FVRG) and Youngevity International Inc. (OTCQX: YGYI), may want to take a closer look at the
stock given their similarities in market capitalization. In addition, investors
in cannabis research companies, like Cannabis Sciences Inc. (OTC Pink: CBIS) and Cannabics Pharmaceuticals Inc. (OTC Pink: CNBX), may also be interested in learning
more.

For more information, visit the
company’s website at www.lexariaenergy.com
or visit CannabisFN’s Lexaria
Corp. Profile to see exclusive interviews and content.

Legal Disclaimer:

Except for the historical information presented herein, matters
discussed in this article contain forward-looking statements that are
subject to certain risks and uncertainties that could cause actual
results to differ materially from any future results, performance or
achievements expressed or implied by such statements. Emerging Growth
LLC dba TDM Financial, which owns CannabisFN, is not registered with any
financial or securities regulatory authority, and does not provide nor
claims to provide investment advice or recommendations to readers of
this release. Emerging Growth LLC dba TDM Financial, which owns
CannabisFN, may from time to time have a position in the securities
mentioned herein and may increase or decrease such positions without
notice. For making specific investment decisions, readers should seek
their own advice. Emerging Growth LLC dba TDM Financial, which owns
CannabisFN, may be compensated for its services in the form of
cash-based compensation or equity securities in the companies it writes
about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

SOURCE: Cannabis Financial Network

ReleaseID: 429274