Lexaria Bioscience Corp. (“Lexaria”) via its s
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Posted On: 11/20/2020 5:49:48 PM
Lexaria Bioscience Corp. (“Lexaria”) via its subsidiary Lexaria CanPharm ULC (“CanPharm”), entered into an asset purchase agreement (the “APA”) for the sale of CanPharm’s rights as licensee and licensor to the use and sublicense of Lexaria’s DehydraTECH Technology (the “Asset Sale”) in association with products containing 0.3% or greater tetrahydrocannabinol (“THC”) with Hill Street Beverage Company Inc. (“Hill Street”).
Note; 1. It`s a sale for rights to apply DehydraTECH trough one of Lexarias subsidiarys. The rights is only for THC products, the deal is not applying to the whole entity of Lexaria Bioscience and certain commitments are to be held by H S, to fullfill the rights of the deal.
2. First 350 000 dollars cash payment, shares of H S 1,5M value. (makes LXRP/us a major shareholder of H S value growth company)
And - a promissory note having a principal amount of $2,000,000 and bearing interest at a rate of 10% per annum. In addition, CanPharm will receive a limited license from Hill Street to use DehydraTECH with limited THC products outside of Canada and the US. CanPharm will maintain its Health Canada cannabis license and the licensed facility for continuing its conduction of research in connection with cannabis. In addition, CanPharm will maintain its shareholdings in third party companies. NOTE; We don`t sell the whole concept and set of formulas and patents of the entire DehydraTech technology!
In addition, CanPharm will maintain its shareholdings in third party companies (smart move, will make the entity Lexaria Biosciense safer)
3. Hemp and Hill Street entered into a new multi-product license agreement providing Hill Street with a global non-exclusive license to produce cannabidiol infused products containing 0.29% or less THC and utilizing the DehydraTECH technology for a ten year period for certain usage fees.
Conclusion; they have divided the deal in 2 separate deals. "Multi product" means a broader set of products - and on each product they manufacture, H S will pay a fee to us, for using our rights as owners of the technology and intellectual property. NOTE; this is a non-exclusive license they purchase. We can use this to our advantage in various ways, further down the line. With other partners or trade asset.
Sum up; we get some and "loose" some - all in all I reckon we get more then we sell. Values as credibility (going into pharma mainly) increase - and that part is difficult to get with only cash. The uplisting happens, with THC/Cannabis it would not be approved!
Money and a significant part of H S company is a savvy trade off.
Furthermore - LXRP is a small team with limited resources, it`s important to make the company grow (cash/equity shareholding/ credibility and more focus!). Choosing the pharma direction will continue potential lucrative deals, being involved now in several studies
and continue to build on established relations within big pharma.
As Chris said; We are about to become a real Biotech company!
Note; 1. It`s a sale for rights to apply DehydraTECH trough one of Lexarias subsidiarys. The rights is only for THC products, the deal is not applying to the whole entity of Lexaria Bioscience and certain commitments are to be held by H S, to fullfill the rights of the deal.
2. First 350 000 dollars cash payment, shares of H S 1,5M value. (makes LXRP/us a major shareholder of H S value growth company)
And - a promissory note having a principal amount of $2,000,000 and bearing interest at a rate of 10% per annum. In addition, CanPharm will receive a limited license from Hill Street to use DehydraTECH with limited THC products outside of Canada and the US. CanPharm will maintain its Health Canada cannabis license and the licensed facility for continuing its conduction of research in connection with cannabis. In addition, CanPharm will maintain its shareholdings in third party companies. NOTE; We don`t sell the whole concept and set of formulas and patents of the entire DehydraTech technology!
In addition, CanPharm will maintain its shareholdings in third party companies (smart move, will make the entity Lexaria Biosciense safer)
3. Hemp and Hill Street entered into a new multi-product license agreement providing Hill Street with a global non-exclusive license to produce cannabidiol infused products containing 0.29% or less THC and utilizing the DehydraTECH technology for a ten year period for certain usage fees.
Conclusion; they have divided the deal in 2 separate deals. "Multi product" means a broader set of products - and on each product they manufacture, H S will pay a fee to us, for using our rights as owners of the technology and intellectual property. NOTE; this is a non-exclusive license they purchase. We can use this to our advantage in various ways, further down the line. With other partners or trade asset.
Sum up; we get some and "loose" some - all in all I reckon we get more then we sell. Values as credibility (going into pharma mainly) increase - and that part is difficult to get with only cash. The uplisting happens, with THC/Cannabis it would not be approved!
Money and a significant part of H S company is a savvy trade off.
Furthermore - LXRP is a small team with limited resources, it`s important to make the company grow (cash/equity shareholding/ credibility and more focus!). Choosing the pharma direction will continue potential lucrative deals, being involved now in several studies
and continue to build on established relations within big pharma.
As Chris said; We are about to become a real Biotech company!
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Robert
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