The statement from CEO Chris Bunka came as part of a shareholder letter published on Thursday that outlined strategic plans for the year
Lexaria Bioscience Corp () (OTCMKTS:LXRP) CEO Chris Bunka told shareholders that they can look forward to “strong, sustainable revenue growth” in 2020 and beyond.
The statement from Bunka came as part of a shareholder letter published on Thursday that outlined the Kelowna, British Columbia-based company’s strategic plans for the coming year.
A key facet of that plan is to list on a major US stock exchange, opening up the company to a new pool of investors, Bunka told shareholders.
READ: Lexaria Bioscience further enhances drug delivery platform as human tests show it delivers THC within 10 minutes
“Although we are listed on the highest tier available at the OTC (the OTCQX), it is not a nationally recognized stock exchange and many capital and strategic opportunities are closed to us despite our many advancements,” Bunka wrote. “Many private equity firms, family offices, and investment dealers are prohibited from investing in companies not listed on a national stock exchange.
“Lexaria expects to pursue a strategy during 2020 to qualify for listing on a nationally recognized exchange, allowing a dramatically larger audience of investors to consider Lexaria’s attributes and opening a path to increased quantities and quality of strategic opportunities.”
Major strides in 2019
Bunka called the past year “the best year of corporate progress that Lexaria has ever experienced.”
The firm started the year with its biggest licensing deal to date with one of the world’s largest companies evaluating its technology, including a negotiated royalty fee applicable to world-wide sales of products utilizing DehydraTECH.
Lexaria's patented DehydraTECH system changes the way active pharmaceutical ingredients enter the bloodstream, promoting healthier ingestion methods, lower overall dosing and higher effectiveness for lipophilic active molecules.
The CEO said that Lexaria hopes to announce ongoing progress with this relationship early in 2020, and attract new Fortune 500 licensees in the coming year.
Lexaria also opened a new US facility to manufacture enhanced DehydraTECH powders and received Health Canada approval to open a new R&D centre in its hometown of Kelowna.
Revenue goals
Bunka did acknowledge that 2019 was far from a banner year for the cannabis sector, as investor optimism faded after many firms posted disappointing results.
“We continue to face headwinds that we need to overcome,” the CEO wrote.
“We need to evidence wider adoption of our technology within the cannabinoid industries. We also need to provide evidence to the investing public that Lexaria is not a cannabis production company but instead should be distinguished and valued as a leading biotech company with a patented, proprietary drug delivery technology with applications to many industries.”
Lexaria expects to more than double its entire 2019 revenue, according to Bunka.
Shares of Lexaria were up 4.4% in Canada at C$0.47 and nearly 7.6% over the counter at US$0.36 on Thursday afternoon.
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