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Lexaria Bioscience Corp. evolved into its current form in 2014 upon controlling acquisition of the former company where Lexaria’s DehydraTECH™ technology originated.  Since then, Lexaria has quickly emerged as a global leader in enhancing the flavour, bouquet and gastro-intestinal delivery of edible cannabinoid consumer products while also working to expand the applicability of its technology, within and beyond the cannabinoid sector, through its out-licensing business model for cannabinoids and other bioactive molecules named in its patent portfolio (NSAIDs, nicotine, vitamins and more).  Lexaria produces industry-leading research to support its novel delivery method. None of this can happen without the talented and dedicated people who have supported Lexaria’s development and growth.

Lexaria has always maximized its resources by attracting top management and advisors and also leveraging the strongest expert consultant relationships.  Supporters have included industry leaders, research scientists, clinicians, analytical chemists, intellectual property experts, study volunteers, partnering company collaborators and, of course, the original inventors of the earliest iterations of Lexaria’s DehydraTECH™ technology.

Q What Business Is Lexaria In?

Lexaria started in 2005 as an oil & gas company. We made several small natural gas discoveries and one small oil field discovery. Although we enjoyed modest success as an O&G company, we never really caught our stride: we generated millions of dollars in revenues but not enough to grow our business.

We also had something of an awakening: the world really doesn’t need another small O&G company – what it DOES need are innovative companies that work to improve the quality of life of its customers. We believe we can make a difference delivering quality food and supplement products, and contribute to our community in doing so.

When the laws in Canada and the USA started to change to allow for medical marijuana or for some of the extracts from Agricultural Hemp to become more widely available, we did our research and learned of real need for these products. So we have applied for a license to grow and sell medical marijuana in Canada; and we have made available our first products in the USA with extracts from agricultural hemp.

MOST of what we do right now is research and formulate food and supplement products that contain beneficial molecules like cannabidiol or other cannabinoids using an innovative, proprietary technology upon which we have two patents as of the date of this write up. We are hopeful that future science and studies will prove our technology to be truly groundbreaking.

Q Does Lexaria Sell Marijuana?

No. We do not sell marijuana or marijuana products. We do, however, actively license our patented technology to licensed companies that operate in the marijuana marketplace for purposes of powering better tasting, faster acting and more potent edible/consumable marijuana based products.

Q What Are The Business Outlooks In The Sectors Where Lexaria Participates?

We participate in more than one sector.

In the field of legal marijuana, the present market size under the MMPR in Canada is estimated at roughly $100 million per year. Although medical marijuana is legal at the federal level, the outlook is somewhat stunted by current court battles and a lengthy, cloudy license application process.

In the US, legal marijuana was a $2.7 billion industry in 2014, reported by Arcview to have enjoyed growth of 74% compared to the previous year – making it the fastest growing industry of more than $1 billion in the country. It is difficult to ascertain whether growth in new customers and patients will outstrip growth in new supply, meaning the price per gram of marijuana may be subject to wide variation in the future, as supply and demand find equilibrium.

Some growers have reported revenues of roughly $1,000 per sq ft of production space, per year. Some medical marijuana patients have reported requiring 1 gram per day. If that gram were to cost $7.00, then 365 grams per year would cost $2,555.

We currently participate in a specialized part of the food industry, and the food supplement industry in the US last year was a $34.6 billion sector. The organic food industry is even larger, and depending on how calculations are derived, has been reported to be as large as $246 billion.

The organic food industry as a whole is growing at an estimated 3% – 5% per year, but segments within it are growing as quickly as 15% or more.

Q is There Anything That Makes Lexaria And Vipova Products Different From Competitors?

YES! The founders of ViPovaTM developed a patented process to infuse the active hemp oil ingredients within lipids. Lipids are often fatty acids or fats. In doing so, a couple of important benefits are realized. One is that the strong taste of raw cannabidiol is masked because it is bound within another substance.

Bioavailability of lipids processed by the human body is high, and we believe our process may lead to a more efficient or effective absorption of the hemp oil into the body. We have not done clinical studies to determine whether that is the case.

However, a series of studies concluded in 2011 found “that CBD can increase the amount of Anandamide and other important lipids.” (Scientists Uncover How CBD Treats MS, Alters Cholesterol Metabolism, FreedomIsGreen.com, Jahan Marcu, May 25, 2011) Research is increasingly finding a link between CBD and lipids, which are not fully understood today. ViPovaTM thinks that its patented process of infusing hemp oil ingredients within lipids may prove to be revolutionary.

Other studies have indicated that CBD not infused within lipids may pass through the human digestive system nearly without absorption (ie, absorption rates of 3% – 6%), raising the valid question of whether it makes sense to ingest CBD unless some method has been used to infuse the CBD into an easily digestible form.

Q Are Lexaria Energy or Vipova Products Expensive?

Our products are produced as efficiently as possible, and anytime we make a technological or production breakthrough, we immediately pass our savings on to you. Remember that you need to compare the prices of our products to a combination of other products. For example, if you enjoy Vipova™ Tea, then you should compare the price per serving to the price of your favorite gourmet tea PLUS a serving of hemp oil from another company. You will find that our products compare favorably.

PLUS we just do not know today if that hemp oil that you purchase from another company is digested/absorbed/accepted by the human body nearly as well as our lipid-infused hemp oil is. Our company exists partly because we think it is silly to use other hemp oil products that may not deliver much bioavailability at all.

And when you compare the price of the Lexaria Energy protein bar to your current favorite protein bar PLUS a serving of rich hemp oil, once again we are confident you will find that our product compares favorably.

We put our ingredients through our patented “manufacturing” process in order to infuse the CBD within the lipids. We think our process may result in higher bio-availability of the hemp oil than simply ingesting it without the lipid-infusion process. That means we just might have the LEAST expensive hemp oil-product on the market today, when you consider how much hemp oil can actually be put to work within your body.

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