Lexaria said the net proceeds will be used to accelerate DehydraTECHTM-based technology and formulation development
() (OTCMKTS:LXRP) announced Wednesday it is arranging a non-brokered private placement for gross proceeds of about US$1 million.
In a statement, the company said the financing is comprised of units being issued at a price of US$0.45 per unit. Each unit shall consist of one common share and one share purchase warrant.
Each warrant shall entitle the holder to acquire one additional share for a period of two years from the date of issue (or expiry date). The warrants shall be exercisable at a price of US$0.80 per warrant share during the first 12 months of issuance and thereafter at a price of US$1.20 per warrant share until the expiry date.
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Lexaria said the net proceeds will be used to accelerate DehydraTECHTM-based technology and formulation development as well as for increased intellectual property and patent pursuit and for general corporate purposes.
Earlier this year, Lexaria moved into its new head office with a Health Canada licensed research and development laboratory that is now conducting world-leading research into drug delivery methods and improvements.
Among many other investigations, the company said DehydraTECH version 2.0 is being investigated for limited commercial release in 2020, continuing Lexaria's drive to offer the world's leading drug delivery platforms.
Essentially, DehydraTECH allows cannabidiol (CBD) and other oils to be dehydrated into an odourless, tasteless powder and mixed with xanthan gum, corn flour and other base ingredients which can then be added to foods, drinks and creams. It also allows drugs and vitamins – in the case of cannabis, CBD – to enter the bloodstream faster than existing drug delivery platforms.
Existing DehydraTECH has been tested as offering 475% more CBD into animal blood than generic industry control formulations and DehydraTECH version 2.0 has been tested at delivering 811% more CBD into blood than the same controls, the company said.
Of even greater interest is the propensity of DehydraTECH version 2.0 to cross the blood-brain-barrier, where animal testing evidenced 1,937% more CBD into brain tissue compared to generic industry control formulations; and 487% more than traditional DehydraTECH.
The ability to effectively deliver drugs to the brain is of keen interest to developers of drugs targeting the central nervous system (CNS). CNS blood vessels and the endothelial cells are unique in that they prevent more than 90% of small-molecule drugs from passing between the cells. It is known that molecules that are soluble in blood and lipids are capable of dissolving into a cell's lipid membrane.
Lexaria, Kelowna, British Columbia, said it will continue its work toward developing its patented technology, including specifically for effectiveness in crossing the blood-brain barrier.
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