Lexaria Bioscience Corp (OTCMKTS:LXRP)
Shares of Lexaria Bioscience Corp (OTCMKTS:LXRP) gained 14.1% after the drug delivery platform innovator announced the acquisition of 100% ownership interest in Poviva Tea LLC. The company previously owned 51%.
Poviva Tea Acquisition
Lexaria Bioscience Corp (OTCMKTS:LXRP) paid $70,000 for the remaining 49% stakes in addition to a granting a waiver on certain debts. In addition, the company is to pay a 5%, 20-year royalty on net profits of ViPova Tea, made up of tea coffee and hot chocolate sales.
The 100% stake acquisition consolidates Poviva Tea LLC as a wholly owned subsidiary of Lexaria Biosciences. The acquisition is also expected to simplify future operations and intellectual property ownership.
“This acquisition strengthens Lexaria’s intellectual property positioning and we reaffirm our commitment to the ViPova Tea product lines,” said Chief Executive Officer Chris Bunka. “Lexaria thanks the founders of Poviva Tea, LLC for their assistance and vision in this transaction.”
Lexaria Bioscience Corp (OTCMKTS:LXRP) impressive start for the month continued in Friday’s trading session. The stock is up by more than 70% for the year as it continues to trade in a strong uptrend. The acquisition of Poviva appears to have strengthened investor confidence in the stock, as it should diversify the company’s revenue base.
DehydraTech Patent Allowance
Separately, Lexaria Bioscience Corp (OTCMKTS:LXRP) has received a groundbreaking U.S patent for its DehydraTech Delivery system for THC, NSAIDs Nicotine, and Vitamins. The Notice Allowance covers the delivery of all active pharmacological ingredients that the company has been seeking. The company expects formal patent issuance within three to four months.
“Issuance of this broad patent will give Lexaria the ability to ramp up our technology out-licensing activities especially within the pharmaceutical sector where the expanded API capacity of our DehydraTECH™ delivery platform will be most applicable,” said John Docherty, President.
In addition, Lexaria Bioscience Corp (OTCMKTS:LXRP) continues to advance other patent applications in various countries. One of its applications has entered patent investigation phase in China.
Lexaria Bioscience Corp (OTCMKTS:LXRP) has extended the expiration date of warrants originally issued on January 9, 2017, with a one-year expiration date. The 500,000 warrants remain exercisable at a price of $0.44 until January 9, 2019.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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