Lexaria Bioscience Corp (OTCMKTS:LXRP) has announced that it has signed a licensing agreement with Cannfections Group Inc. for the DehydraTECH™ technology.
The definitive licensing deal will allow Lexaria to provide its DehydraTECH™ technology to the Canadian cannabis chocolate manufacturer so that it can be used to enhance product quality. The patented Lexaria technology will facilitate the production of better cannabis-infused chocolates as well as other candies which will then be sold in Canada as well as the international market.
The licensing agreement will allow Lexaria to provide Cannfections’ manufacturing expertise and formulations to other companies that also benefit from its license. This will allow them to take advantage of all the technology and technical know-how to make DehydraTECH™-powered and infused chocolates. The licensing deal is also expected to lead to the creation of more edible products that are infused with cannabis. This will, in turn, enhance the portfolio of products while also allowing the manufacturer to reach a wider international market and thus potentially more returns.
“By licensing our technology to Cannfections, Lexaria can now offer its commercial clients the expertise of one of Canada’s oldest and most established chocolatiers utilizing next-generation DehydraTECH™ technology,” stated Chris Bunka, the Chief Executive Officer of Lexaria.
The newly announced deal is expected to last for seven years. Bunka also pointed out that the new license agreement between the two firms represents a long-term strategic relationship that will provide expertise, value, and technology to licensed manufacturers. The partnership will be ideal especially for manufacturers that desire to provide chocolate edibles and other candies of the highest quality once they receive regulatory approval from Health Canada.
The DehydraTECH™ technology from Lexaria is designed to provide enhanced delivery of many active pharmaceutical ingredients (“API”) that are commonly used. It is able to offer an extra layer of effectiveness that is, in turn, able to synchronize with the intellectual property of other manufacturers. The company is currently evaluating other technologies that might offer significant extra value to its already existing and strong portfolio of technologies that are patented.
Lexaria stock closed the latest trading session at $1.89.