Lexaria Bioscience Corp. Investor Presentation October 2016 - - PowerPoint PPT Presentation

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Lexaria Bioscience Corp. Investor Presentation

October 2016 CSE:LXX; OCTQB:LXRP www.lexariaenergy.com

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Disclaimer

This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act

• f 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements

which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, evaluation of medical marijuana projects, alternative health projects

• r products, and cannabidiol-fortified products or services for participation and/or financing, competitive

positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions that are forward-looking statements. Such forward- looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements including, without limitation, foreign exchange and other financial markets; changes of the interest rates on borrowings; whether or not the Company will be successful in executing its business plan in whole or in part; hedging activities; changes in commodity prices; changes in the marketing or capital project expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which Lexaria Corp. operates. These and other risks and uncertainties are more fully described in our periodic reports and other disclosure documents filed by Lexaria

• Corp. from time to time with regulatory authorities available on SEDAR at www.sedar.com and on EDGAR at

www.sec.gov, and the reader is encouraged to review these documents. Planned dates stated herein are estimates only, based on best information available. Dates are not assured and are subject to revision without

• notice. The Company assumes no obligation, except as required by law, to update any forward-looking

statement, whether as a result of new information, future events or otherwise. This presentation is not an

• ffer to sell or a solicitation of an offer to buy securities of Lexaria Bioscience Corp. It is a short summary of

certain information for introductory purposes only and is not to be relied upon for investment purposes. No statement within has been evaluated by the Food and Drug Administration, and no product or service is intended to diagnose, treat, cure or prevent any disease.

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Lexaria Bioscience Corp.

• Lexaria is a bioscience technology disruptor for edible cannabinoids,

– Masks taste, improving consumer satisfaction, – Faster acting, enhancing outcome, – Increased potency, lower overall dosing.

• THC effects are felt within 15-20 min of consumption,

– Compared to industry norm of 60-120 min.

• CBD absorption within 15 min,

– Evidenced by nitric oxide surrogate biomarker test.

• Lab tested - 5X higher absorption and faster effectiveness.
• Cannabinoid edibles - a high growth segment within a high growth market.
• Customers demands:

– Healthy alternatives to smoking, especially for medical use, – Better tasting, faster acting and more potent edible cannabinoid products.

• Patent-allowed and patent-pending technology covers many molecules:

– Cannabinoids (e.g., CBD and THC), Nicotine, vitamins, NSAIDs - Non-steroidal anti-inflammatory drugs, (such as ibuprofen),

• Out-license (royalty) model & sales of Lexaria products.

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Growth of Cannabis Edibles

• Cannabis: a high growth industry – now $7B,

– On Nov 8th – 9 States vote on legalization, – If passed, California’s legal cannabis market to grow from $2.7B to $6.6B by 2020. (Arcview)

• Edibles – high growth within the Cannabis industry,

– Healthier alternative to smoking, – Medical patients show a preference to edibles, – 53% YOY growth in edibles. (Marijuana Business Daily)

• Consumers and patients are seeking inconspicuous and healthier

consumption methods.

• THC/CBD is absorbed differently in edibles,

– Normally takes 30 – 120 min to feel effects, – More difficult to dose.

• Lexaria’s disruptive technology improves experience of edibles,

– Higher bioavailability (5X increase), – Faster acting (within 15-20 min), – Masks taste.

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Transforming entry into the body

Many active compounds are:

Bad tasting upon

• ral intake

Largely destroyed by stomach acid Unable to significantly cross intestinal wall Broken down by the liver

Lexaria’s Technology Enables:

Flavor masking for poor tasting compounds Protection during stomach transit 5-10X amplified intestinal absorption! Ability to bypass first pass liver metabolism when desired LOW Bioavailability HIGH Bioavailability

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How Does The Technology Work?

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Active Substance (eg. THC, CBD)

Process: 1) Mix substance 2) Mix with food/carrier

Molecular bond formed Fatty Acid Oil

(eg. Sunflower oil as a long chain fatty acid oil)

Food/carrier particles are infused with conjugate

Results: 1) Taste is masked 2) Protection against stomach acids and enhanced intestinal absorption

Intestines preferentially absorb long chain fatty acids lymphatically (bypassing liver) and medium chains via the liver Fatty Acid Oil masks conjugated active substance flavoring

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Lab Tests / Human Focus Studies

• In vitro Absorption Study

– August 2015, 3rd party lab, – 499% increase in CBD bio absorption in human intestinal tissues.

• Human Biomarker Study

– January 2016, human subjects, – 5-10 X increase in salivary nitric oxide within 15-30 min, – Surrogate indication of proportionate CBD absorption.

• Human Focus Study

– March 2016, – 15-20 minutes for onset of THC effects in human volunteers, – Test subjects ranked Lexaria formulation as best tasting, most palatable and delivering the best

• verall THC experience.

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Patents - Allowed and Pending

• 8 patent applications filed; US and international, under the Patent Cooperation

Treaty (PCT),

– Patents include both method and composition of matter claims.

• The patents name a broad range of bioactive substances that can be formulated and

delivered using Lexaria’s technology,

– Ability to formulate across many consumer product dosage forms (see table).

• USPTO “Notice of Allowance” received July 2016,

– “Food and Beverage Compositions Infused with Lipophilic Active Agents and Method of Use Thereof”,

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– Method claims for combining a lipophilic active agent together with a bioavailability and taste enhancing oil by dehydration or lyophilization, and doing so in contact with a food product substrate material,

• Final patent issuance

expected shortly.

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Business Model: 1)Royalties

• Out-licensing technology (royalty) to third-party

partners in royalty model.

• Deals announced to date:

– CBDM LLC., for 5 THC products,

• LOI signed Aug 2016.
• Access to PA, MA, NV, AZ & Indian Lands.

– Undisclosed, for 3 THC products,

• Agreement signed May 2016.
• Access to CO, WA, CA, OR.

– Undisclosed, for THC products,

• California based - well-known brand,
• LOI signed Aug 2016.

– Timeless Herbal Care Ltd., multiple CBD products

• Agreement signed Sept 2016.
• Access to USA, Canada, Jamaica.
• High Margin royalty (5-10% of gross sales).

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Business Model: 2)Product sales

• Lexaria’s distinguishing hemp oil CBD product benefits:

– HIGH ABSORPTION + GREAT TASTING Hemp Oil Formula – Excellent source of Omegas and Essential Fatty Acids – Engineered for physiological performance & recovery

• Reduces anxiety/stress and promotes focus
• Offsets pain and inflammation
• Supports circulation (nitric oxide booster / vasodilator).
• Protein Energy Bars

– Sports nutrition focus – Excellent for energy, fiber and protein – Two flavours

• Exotic Teas

– Our ViPova™ brand premium teas – Anti-oxidant – Seven flavors

• TurboCBD™ COMING SOON!

– New Category Entry – Special formulation with Hemp oil, and complementary herbal ingredients

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Business Model: 3)White Label

• White label of Lexaria’s product offerings

(CBD/Herbal products).

• Deals announced to date:

– Timeless Herbal Care Limited,

• Signed August, 2016,
• Private label distribution deal for Lexaria’s

product offerings USA, Canada and Jamaica.

• Lexaria will receive royalties on all gross

product sales.

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Key Executives

• Chris Bunka - Chairman & CEO.

– Serial entrepreneur involved in several private and public companies since the late 1980’s. Extensive experience in the capital markets, corporate governance, M&A and finance. He has raised >$50M in working capital for companies he has led over the course of his career.

• John Docherty, M.Sc. - Director & President.

– Over 20 years of senior executive experience in the pharmaceutical and bioscience sectors in National and Retail brands with an emphasis in the development of drug delivery technologies. Former President and COO of Helix BioPharma Corp. (TSX: HBP). Named inventor on multiple issued and pending patents. M.Sc. in pharmacology and B.Sc. in toxicology from the University of Toronto.

• Mr. Ted McKechnie – Director.

– Senior entrepreneurial executive with extensive senior management / board experience in the consumer goods industry in National and Retail brands. Proven track record of achieving corporate financial/growth objectives. Former President and COO of Maple Leaf Foods and has held executive positions with Kraft, Frito Lay, General Foods, PepsiCo, and Philip Morris

• Companies. Founder, Chairman and CEO of Canada’s Technology For Food.

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Stock Information

Trading symbol: CSE:LXX, OTCQB:LXRP Shares o/s: 51.3m Fully diluted: 67.6m Management & Insiders: 13.5m (26%) Recent price: C$0.16 / US$0.13 Latest financing: US$196,000 Aug 2016 Fiscal year-end: August 31

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North American Marijuana stock index (3mo) LXX share price (1 yr)

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156 Valleyview Rd, Kelowna, BC V1X 3M4 Chris Bunka 250 765 6424 bossbunka@gmail.com

www.LexariaEnergy.com

Contact Information

Information and education resources: Hemp CBD Products: here Educations links and documents Consumers willing to pay more for bioavailibility: here

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Different Cannabinoid Benefits

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Different Cannabinoid Benefits

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Digestion & Absorption of Lipids, G. Rajeev, Health & Medicine, 2014

Fatty Acid Absorption Mechanism

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