QualityStocksNewsBreaks – Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) Subsidiary Enters Definitive Investment Agreement with Altria Ventures Inc.

Drug delivery platform innovator Lexaria Bioscience (CSE: LXX) (OTCQX: LXRP) today announced that its wholly-owned subsidiary Lexaria Nicotine LLC has executed a definitive agreement with Altria Ventures Inc., an indirect wholly owned subsidiary of Altria Group, Inc. (NYSE: MO), to pursue innovation in oral, reduced risk nicotine consumer products using Lexaria’s patented DehydraTECH™ technology. In exchange for a minority equity interest in Lexaria Nicotine and DehydraTECH™ license rights for oral nicotine delivery forms on an exclusive basis in the US and a non-exclusive basis elsewhere globally, Altria will fund a milestone-based research & development (“R&D”) program to be executed by Lexaria Nicotine. The company will conduct a series of clinical investigations of oral forms of nicotine delivery, utilizing DehydraTECH™ technology. The funding from Altria will consist of an initial $1 million with the option for additional funding of up to $12 million through multiple phased private financings. Altria will pay Lexaria Nicotine a royalty on revenue generated from the sale of nicotine products containing DehydraTECH™ and holds the option to acquire 100% ownership in Lexaria Nicotine, at which time royalty payments would stop. Additionally, Altria has the right to initially appoint one of the seven directors on Lexaria Nicotine’s board of directors and, through further phased investments, may have the right to appoint up to three of the seven directors.

“Lexaria Bioscience is proud that, after careful selection, Altria has chosen to fund research into DehydraTECH™ technology and potentially commercialize this technology for oral nicotine,” Lexaria Bioscience CEO Chris Bunka stated in the news release. “This partnership will provide significant benefits to Lexaria Bioscience and its shareholders with a world-class R&D Program and regulatory compliance process. We believe Altria is the best corporate partner we could work with to truly make a difference in the lives of millions of consumers.”

To view the full press release, visit http://ibn.fm/1HsQI

About Lexaria Bioscience Corp.

Lexaria Bioscience Corp. has developed and out-licenses its disruptive delivery technology that promotes healthier ingestion methods, lower overall dosing and quicker onset of lipophilic active molecules. Lexaria has ten patents granted in the USA and in Australia and has filed over 50 patent applications worldwide across ten patent families. Lexaria’s technology provides more rapid delivery to the bloodstream; and important taste-masking benefits, for orally administered bioactive molecules including cannabinoids, vitamins, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine and other molecules. Lexaria Nicotine LLC is a United States domiciled, majority-owned subsidiary of Lexaria Bioscience Corp., focused on reduced-risk nicotine solutions www.LexariaNicotineco.com. For more information, visit the company’s website at www.LexariaBioscience.com.

About QualityStocksNewsBreaks

QualityStocksNewsBreaks provide a rapid summary of corporate news that catch the attention of QualityStocks. QualityStocksBreaks are designed to keep investors up to date on important and breaking news in the small-cap and micro-cap markets. Spanning all industries, including energy, entertainment, telecommunications, healthcare, retail and more, these news breaks deliver opportunities the investment community may have missed. Whether it is earnings results, mergers and acquisitions, or any other market-moving news, our news breaks keep you in the know. QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. It is part of our mission statement to help the investment community discover emerging companies that offer excellent growth potential.

QualityStocks (QS)
Scottsdale, Arizona
www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com

Please see full terms of use and disclaimers on the QualityStocks website applicable to all content provided by QS, wherever published or re-republished: http://www.qualitystocks.net/disclaimer.php