Lexaria Bioscience Corp. (NASDAQ: LEXX) Expands Production Capabilities to Support Growing List of Business-to-Business Clientele

• Lexaria is a global innovator in drug delivery platforms; its patented DehydraTECH(TM) technology improves the bioavailability, speed of onset, and brain absorption of active pharmaceutical ingredients (“API”)
• Testing confirms that DehydraTECH-processed cannabidiol beverages maintained 93.4% and 78% potency of CBD a full year and two years after production, respectively
• Lexaria recently signed two agreements with BevNology LLC, an Atlanta-based company with advanced capabilities that support best-in-class beverage formulations
• The partnership, which also leverages Lexaria’s superior DehydraTECH-CBD nanoemulsification formulation and processing techniques, could make industry-leading beverage products a reality for many brands 

In this year’s letter to shareholders, Lexaria Bioscience (NASDAQ: LEXX) Chair and CEO Chris Bunka acclaimed the company’s research and development achievements which had resulted in remarkable stability of DehydraTECH(TM)-processed cannabidiol (“CBD”) beverages. One year after production, Bunka wrote, “bottled consumer beverage contained a remarkable 93.4% potency of CBD. We also showed less than 1% variability of CBD potency within the beverage, a concept of critical importance when delivering drugs in an aqueous solution” (https://ibn.fm/uhiIf).

The latest data from stability testing undertaken 25 months after initial bottling show the product had higher variability but still retained an average 78% of originally formulated CBD. Additionally, the microbiologic purity and cleanliness of the product surpassed all requirements 25 months after bottling.

One problem that has long caused the instability and variability of cannabis drinks, which normally include cannabinoids such as CBD and tetrahydrocannabinol (“THC”), is the hydrophobic nature of the cannabinoids. When THC or CBD are extracted from the cannabis or plant, they take an oil-based form. And as a Prepared Foods article notes, this hydrophobic nature complicates their use, particularly in water-based products. Studies have, in fact, shown that the insolubility of CBD, for instance, results in bioavailability as low as 4%. But companies can get around this problem using adequate manufacturing techniques that employ encapsulation and emulsification (https://ibn.fm/sanbV).

“First and foremost, encapsulation allows for even dispersion throughout the product, meaning consumers will get the same amount of an active ingredient, such as CBD or THC, in each bite or sip,” reads the Prepared Foods article. “Encapsulation also improves a product’s shelf life, preventing the cannabinoid content from degrading over time and keeping the formulation stable.”

On the other hand, emulsification, which involves using a binding agent known as an emulsifier, aims to improve the absorption and onset times. There are three types of oil-in-water emulsions, macro, micro, and nano, with nanoemulsions featuring prominently in the cannabis food and beverage industry.

Lexaria understands the impact of adequate manufacturing techniques on the potency of its DehydraTECH-processed CBD products. And in a recent move that expands its manufacturing prowess even further, the company recently signed two agreements with BevNology LLC, a leading Atlanta-based beverage development and advisory company focused on providing quality formulation and commercialization services of cutting-edge beverage products (https://ibn.fm/pJVrz).

One of these agreements, a manufacturing operating agreement, expands production capabilities for Lexaria’s own growing list of business-to-business (“B2B”) clients looking to purchase DehydraTECH-powered active ingredients for consumer-packaged-goods brands. BevNology custom-built a new, state-of-the-art processing facility that expands production capacity substantially. Already, the facility is operational and serving Lexaria’s clients. On its part, Lexaria installed all required commercial DehydraTECH manufacturing equipment into the facility in anticipation of future growth.

Meanwhile, the second agreement, a commercial license agreement, authorizes BevNology to offer DehydraTECH products with hemp-derived active ingredients, including CBD, under BevNology and partnered brands. This agreement leverages BevNology’s advanced capabilities that support best-in-class beverage formulations coupled with Lexaria’s superior DehydraTECH-CBD nanoemulsification formulation and processing techniques, could make industry-leading beverage products a reality for many brands. 

“These agreements build on a long-standing and very successful product development consulting relationship between Lexaria and the expert scientists and personnel at BevNology,” commented Chris Bunka. “BevNology’s formulation and production capabilities are class leading, and we are confident that our new relationship with our trusted partner will propel new and exciting growth opportunities for both companies.”

Lexaria Bioscience is a global innovator in drug delivery platforms, its patented DehydraTECH technology improves the bioavailability, speed of onset, and brain absorption of active pharmaceutical ingredients (“API”).

For more information, visit the company’s website at www.LexariaBioscience.com.

NOTE TO INVESTORS: The latest news and updates relating to LEXX are available in the company’s newsroom at https://ibn.fm/LEXX

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