LXX stock is in the green on Wednesday after Lexaria Bioscience (CSE:LXX) (OTCQX:LXRP) announced that it had reached an expanded agreement with Cannadips Cannabis to provide its DehydraTECH drug delivery technology to the cannabis punch and dip producer.
LXX Stock Boosted By Exclusive Agreement
Cannadips is a US-based manufacturer of a variety of cannabis and hemp products, including Cannadips Cannabis Tins, which contain pouches with 10mg of cannabis-derived THC per pouch without any nicotine or tobacco. Cannadips' pouches differ from edibles in that the THC is absorbed in the mouth rather than in the digestive systems and so does not have the delayed onset. Lexaria will supply technology to Cannadips' current market in California, with potential expansions to broader markets possibly boosting LXX stock even more than the 6.5% gains made today.
Lexaria is a Kelowna, British Columbia-based cannabis technology firm that has developed an improved dipping technology that is fast-acting and has a higher absorption rate."We are excited that Cannadips is interested in activating the Lexaria technology in additional key state markets that are either recreational or medical cannabis states while preserving the brand rights as states come online through regulation," Lexaria Bioscience CEO Chris Bunka said in a statement. LXX stock is currently trading for $0.65.
Lexaria Looks to Broader Markets
The agreement will give Cannadips exclusive rights to Lexaria's technology for the next ten years in the US market, and also includes the option to expand into Europe, Mexico, and/or Canada. Cannadips said that the addition of Lexaria Bioscience's technology to its portfolio will allow it to partner with operators in other states and bring its cannabis technology across state lines.
The company is currently working on the construction of a 4,000-square-foot facility in Humboldt, California, and expressed interest in activating the Canadian Oral Pouch Cannabinoid market, for which there is little market research on but could drive gains in LXX stock pending the rollout of the cannabis 2.0 market.
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