Lexaria Bioscience (LEXX.Q) announced today that its DehydraTECH™ technology has been embraced by consumer brands and is now available for sale in over 7,000 stores across the US.
“Lexaria’s technology is enabling increased market share and sales growth for our continually growing list of corporate clients…We are delighted to help these innovators of today and leaders of tomorrow offer their clients superior performance and experiences that competitors simply cannot match, and we are highly anticipatory of additional growth to come,” said Chris Bunka, CEO of Lexaria.
It looks like Lexaria decided to finally step away from the lab for a second and breathe that sweet summer air. After a series of press releases regarding the Company’s HYPER-H21-2 and VIRAL-A20-3 clinical studies, news related to Lexaria’s commercial success is quite refreshing. Through Lexaria’s numerous business-to-business (B2B) clients, a variety of DehydraTECH™ enabled products will be hitting the markets, with more expected in the future.
One of Lexaria’s many clients includes New World CBD, which currently sells its CBD products in over 1,500 Albertsons, Safeway and Vons stores, and more than 300 Hudson News locations. With this in mind, New World CBD is in discussions to have its products sold in an additional 96,000 convenience and grocery stores nationwide. In the near future, all of the company’s next-generation topical products, including five new SKUs expected in Q4 2021, will utilize Lexaria’s DehydraTECH™ technology.
Lexaria prides itself on only partnering with the most advanced thinking, forward looking brands in America. Most importantly, all of Lexaria’s B2B clients share in their belief that customers are the most important part of a business. Looking at the Lexaria’s revenue for the fiscal year ended August 1, 2020, this customer-centric mantra appears to be serving the Company well. As of August 1, 2020, Lexaria’s product sales reached $150,993 compared to $24,282 year-over-year. As of May 31, 2021, the Company’s product sales grew even further to $360,558.
Between May 31, 2020 and May 31, 2021, the Company’s intermediate product sales were largely driven by licensees increasing their production and orders of Lexaria’s intermediate product, a DehydraTECH™ enabled powder that companies can purchase to include in their products. For example, referring back to Lexaria’s latest news, Impact Naturals has chosen DehydraTECH™ as the basis of its next-generation CHYLOSOMA™ formulations of CBD, CBG and CBN along with American Ginseng, Gingko Biloba and Melatonin. Similar to New World CBD, Impact Naturals also intends to release new SKUs in Q4 2021, including 3 topical skin products utilizing DehydraTECH™.
With this in mind, Lexaria has its foot in both the hypertension and cannabis markets. In addition to the Company’s growing commercial presence, Lexaria’s HYPER-H21-2 human clinical study appears to be proceeding without a hitch. If successful, Lexaria’s DehydraTECH™ 2.0 enabled CBD could introduce a disruptive treatment alternative to the billion dollar hypertension treatment market.
Lexaria’s share price opened at $6.67, down from a previous close of $6.74. The Company’s shares are down -2.82% and were trading at $6.55 as of 10:19AM ET.
