Kelowna, BC / September 8, 2016 / Lexaria Bioscience Corp. (OTCQB:LXRP) (CSE:LXX) (“the Company” or “Lexaria”) is proud to announce two important new developments:
Lexaria has entered its first ever Private Label agreement. Under the terms of the agreement, Lexaria will cause a certain new line of cannabidiol/herbal products powered by its patent-allowed technology to be manufactured under the Timeless Herbal Care Limited (“Timeless”) brand name for Timeless to market and distribute across the USA, Canada, and Jamaica. The Timeless brand with Lexaria’s enhancements will offer Timeless’ consumer base improved taste and bioavailability for hard-to-absorb molecules. By utilizing Lexaria’s protected technology the products will be unique in a sector where tangible benefits are highly sought after.
Lexaria will earn a pre-defined premium to costs on all raw ingredient sourcing and manufacturing, and will further earn a pre-defined royalty rate on all gross product sales revenues earned by Timeless in all three countries. The agreement is for an initial term of 5 years.
Although not certain, there is an expectation that the Timeless products private-labelled from Lexaria could be offered for sale in up to one thousand locations across the USA within a reasonable period.
DEFINITIVE TECHNOLOGY OUT-LICENSING AGREEMENT.
Lexaria has also entered a definitive technology out-licensing agreement with Timeless. Under the terms of the agreement, Timeless has acquired exclusive rights along with only Lexaria itself in the country of Jamaica and the option to acquire semi exclusive rights in each of Canada and the USA to use Lexaria’s patent-allowed palatability and absorption improving technology to develop, produce and sell certain products containing cannabidiol and other active ingredients under the Timeless brand in those nations.
This definitive agreement does not represent either of the other two existing LOIs previously announced by Lexaria, each of which are hoped to result in their own definitive agreements in due course. The definitive agreement with Timeless is of 3-years’ duration in each nation and provides for either of a pre-determined royalty rate or a fixed usage fee payment schedule to be paid to Lexaria on all Timeless revenue generated utilizing the Lexaria technology.
Lexaria expects to earn a minimum of $921,000 from Timeless on the sale of products assuming it enters all three nations. The definitive agreement also includes access fees to be paid by Timeless to Lexaria on a per nation basis. In the cases of the USA and Jamaica, these fees will be paid on an in kind basis through Timeless executing certain deliverables for Lexaria that includes execution of clinical testing in patients with chronic conditions who receives products with Lexaria’s technology at a major medical center. All total, these fees are expected to have additional value to Lexaria of more than $300,000 in cash and in kind.
Additional information and details regarding the clinical testing to be conducted by Timeless for Lexaria will be announced in due course. Readers are cautioned that the clinical plans are currently in the preliminary design stages and will, like any other clinical testing in patients with chronic conditions, likely take an as yet undetermined period of many months to complete and report. Lexaria will have no funding responsibilities for the clinical testing and does not influence its funding sources which are third-party to the Company.
“Timeless is pleased to have entered into these two significant agreements with Lexaria which allows us to immediately bring our line of products to market”, said Courtney Betty, CEO of Timeless. “Timeless is now positioned to be a leader in the development of CBD nutraceutical products which will be combined with other Jamaican medicinal plants.”
“Lexaria is proud to have reached these important agreements with the team at Timeless Herbal,” said Chris Bunka, CEO of Lexaria Bioscience. “Together with Timeless, we are moving fast to attack exciting consumer sectors new to us that we believe will deliver significant results. We progressed rapidly from initial negotiations through to a definitive agreement because of our shared vision and values of becoming market leaders in our chosen sectors.”
Lexaria believes that the Timeless business network that spans three countries can deliver meaningful value to its stakeholders. Timeless Herbal Care Limited is an international nutraceutical research and development company focused on high quality, pharmaceutical grade, medical marijuana products. Based in Jamaica, Timeless has partnered with various Jamaican and international private, public and educational institutions to develop, market and distribute products. Timeless utilizes Jamaican grown raw materials to minimize production costs and maximize quality.
Readers are cautioned much of the financial compensation for Lexaria under these agreements is dependent upon the success of the Licensee in selling products enhanced with Lexaria’s technology.
Lexaria Bioscience Corp. is a food sciences company focused on the delivery of active compounds that can behave as superfoods through its proprietary infusion technologies. Lexaria’s technology enables higher bioavailability rates for CBD; THC; NSAIDs; Nicotine and other molecules than is possible without lipophilic enhancement technology. This can allow for lower overall dosing requirements and/or higher effectiveness in active molecule delivery. Lexaria hopes to reduce other common but less healthy ingestion methods such as smoking as it embraces the benefits of public health. www.lexariabioscience.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Lexaria Bioscience Corp.
Chairman & CEO
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 license arrangements may be entered into with other companies or partners, that the Company’s technology will prove to be beneficial to third parties or to generate revenue for the Company. 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. Access to capital, or lack thereof, is a major risk and there is no assurance that the Company will be able to raise required working capital. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, 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 the participation in the hemp oil sector or alternative health businesses will provide any benefit to Lexaria, or that the Company will experience any growth through participation in these sectors. There is no assurance that the new private label agreement entered will result in any revenues being realized by Lexaria. There is no assurance that Timeless Herbal Care Limited will execute their business and therefore no assurance that the definitive license agreement will provide new revenues to Lexaria. There is no assurance that existing capital is sufficient for the Company’s needs. There is no assurance that any planned corporate activity, business venture, or initiative will be pursued, or if pursued, will be successful. There is no assurance that any patent application in the USA or any other nation or under any treaty will result in the award of an actual patent; nor that an award of any actual patent will protect against challenges from unknown third parties. There is no assurance that any of Lexaria’s postulated uses, benefits, or advantages for the 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). ViPovaTM and Lexaria products are not intended to diagnose, treat, cure or prevent any disease.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.