Continuing our series of interviews with people we’ve kicked about in 2016, one company that I’ve often lambasted is Lexaria Biosciences (LXX.V).
Why have I given them crap?
Because every so often they release a news release that cuts a corner, makes an unbackable statement, and muddies water that investors need clear.
Case in point:“Effective immediately, all ViPovaTM black and herbal teas have new lower retail prices of just US$15.99 for a box of 16 teabags, always fortified with full spectrum hemp oil that utilizes Lexaria’s patented absorption and taste enhancing technology. Previously, 16 teabags were priced at US$48, making this a price reduction of 73%.”
The reason for the price cut? “First, wholesale bulk prices of commercial quantities of full spectrum hemp oil have declined significantly in the past year, and Lexaria is passing those savings on to its customers. Second, Lexaria’s manufacturing and formulation efficiencies have advanced, resulting in lower costs of production.”
Third: The guy who was running that SKU resigned, the product was really only a test run to show potential clients the tech works, and we have a lot of it sitting about catching dust.
That third one wasn’t a direct quote, but it’s the real truth, as outlined in the following podcast that I did with Lexaria execs before Christmas. In it, they clarify the real opportunity at Lexaria isn’t tea but the patented tech they have that may make for better cannabis-related products (fair), and admit that they’ve sometimes gilded the lily when it comes to their news releases (very fair), which led to me putting the slipper in for most of 2016.
If you don’t know Lexaria, this is a good primer on them. If you, like me, had dismissed them previously as being over-hypey and under-delivered, there may be some upside to find within.
My take on the company is, it’s great to get a mea culpa and more detailed info. Whether the company can deliver on the promise remains to be seen, but respect to them for stepping up and putting hand to heart. They move from the ‘hell no’ column to the ‘fresh start’ column from here.
— Chris Parry