Lexaria Bioscience Corp (OTCMKTS:LXRP) shares were down 0.04% on Tuesday to $0.230. The company has a market cap of $13.95 million at 51.29 million shares outstanding. Share prices have been trading in a 52-week range of $0.08 to $0.35.
Lexaria Bioscience Corp is increasing its stake in the booming cannabis sector, which is poised for more growth following the November 8 elections that legalized the use of marijuana for recreational or medical use in certain states. With that, the company signed a Memorandum of Understanding forming a 50/50 Joint Venture with NeutrisSci International Inc to develop, produce and sell a line of healthy edible cannabinoid products using Lexaria’s patented technology and Neutrisci’s proprietary pterostilbene tablet formula and international distribution network.
Both parties are also expected to commercialize any newly created cannabinoid edible products through distribution programs with existing strategic partners.NeutriSci specializes in innovative nutraceutical products like its proprietary sublingual zero-sugar tablet that can help create new cannabinoid edible products. Additional product offerings will also be tested under the joint venture, which will include other cannabinoids like tetrahydrocannabinol or THC.
“This JV is a demonstration of the rapid innovation occurring in the cannabis industry. We are excited to explore the potential to use our technology to develop healthy cannabinoid products which could be a natural fit within NeutriSci’s distribution network,” remarked Chris Bunka, Lexaria bioscience corp CEO.
“We were immediately intrigued when we were approached with the idea of using our tablet and form factor to create a new line of zero-sugar and dose controlled cannabinoid edible products,” added Glen Rehman, NeutriSci president. “By combining Lexaria’s technology to mask strong tastes and increase bioavailability, this JV has the potential to create a whole new line of healthy cannabinoid edible products, which we expect will have high appeal to today’s health conscious medicinal consumers and recreational users.”
State-regulation for cannabis use in several states approved earlier this month led analysts to estimate that the legal cannabis market could grow to $20 billion by 2020, making it poised to be the fastest-growing industry in the world. Companies have been scrambling to get a piece of the action, with food and beverage firms putting more focus in developing infused drinks and edibles.
In particular, the companies plan on marketing their products developed under the joint venture to health conscious consumers. This can feature Lexaria’s CBD-rich fullfull spectrum hemp oil blended into NeutriSci’s pterostilbene tablet formula.
Lexaria Bioscience Corp is a food sciences company that is focused on the delivery of cannabinoid compounds procured from agricultural hemp, through gourmet foods based on its infusion technologies. The company operates through three segments: oil and gas exploration, medical marijuana and Alternative Health Products.
Formerly known as Lexaria Corp, it offers its products under the ViPova and Lexaria Energy brand names. These brands use technology to infuse hemp oil ingredients with a lipid in foods. In particular, the company is focused on the delivery of hemp oil compounds procured from agricultural hemp seed oil. Its ViPova black tea is a Chinese black tea from the province of Yunnan infused with hemp oil within dried evaporated non-fat milk.