Hill Street Licensed to Offer DehydraTECH
Products, Ingredients, and Infused Beverages Worldwide.
KELOWNA, BC and TORONTO, July 24,
2019 /CNW/ - Hill Street Beverage Company Inc.,
(TSXV:BEER; "Hill Street") and Lexaria Bioscience Corp. (OTCQX:
LXRP) (CSE: LXX), an innovator in drug delivery platforms, today
announced a multi-faceted expansion of their relationship .
Hill Street and Lexaria have entered into a Joint Manufacturing
Partnership ("JMP") valid for 10 years to produce DehydraTECH™
commercial products under a new brand to be announced, including
both processed THC and CBD powders in the form of compressed
tablets, capsules, or sachets for new consumer products for sale in
Canada and for export where
permitted, subject to Health Canada approval. These new products
could allow consumers to infuse any beverage with cannabis without
affecting the taste, smell, or other physical attributes. The JMP
will also produce similar powders for use as an ingredient for
licensed producers in Canada
seeking to use Lexaria's advanced infusion technologies in
beverages, edibles and topicals.
Manufacturing will be done at Hill Street's recently announced
OneLeaf Cannabis cultivation and processing facility in
Regina, Saskatchewan, subject to
closing of the OneLeaf acquisition, and its licensing by Health
Canada. Hill Street will own and manage all aspects of the
manufacturing business under Lexaria's own license and patents for
DehydraTECH and its related processes. Profits from this business
unit will be shared equally between Hill Street and Lexaria.
Both companies anticipate greatly enhanced cashflows from the
JMP, and for Lexaria in particular, the JMP marks its first
opportunity to more directly benefit from the emerging federally
legal cannabis edibles industry in Canada.
"The new relationship between Hill Street Beverages,
One Leaf, and Lexaria Bioscience
marks the beginning of an unprecedented opportunity to deliver
outstanding consumer experiences to cannabis consumers," said
Chris Bunka, Chief Executive Officer
of Lexaria Bioscience. "We are delighted to be working with the
astute branding and cannabis expertise of the Hill Street/OneLeaf
alliance team and believe that Canadian and global cannabis
consumers will benefit greatly."
The new JMP between Hill Street and Lexaria will, for the first
time ever, permit intermediate ingredients made from cannabis
processed by Lexaria's DehydraTECH to be legally sold within
Canada on a B2B basis between LP's
and others licensed by Health Canada to manufacture
cannabis-infused edibles, including both THC and CBD. Cannabis and
hemp powders produced using DehydraTECH are extremely stable with
two to three-year shelf life, are odorless and tasteless, and yet
deliver full spectrum experiences for consumers without having to
compromise with isolates and distillates of cannabis oil.
In addition to the manufacturing partnership, Hill Street has
acquired a global semi-exclusive license (with minor exceptions) to
utilize Lexaria's DehydraTECH™ THC beverage infusion technology and
a global non-exclusive license to utilize Lexaria's
DehydraTECHTM CBD beverage infusion technology around
the world valid for 10 years. This expands the July 31, 2018 license award to Hill Street to use
DehydraTECH for THC beverage formulation in Canada only, and positions Hill Street as the
only company in the world to have earned a license to use
DehydraTECH globally. License royalties for the use of DehydraTECH
will be activated as Hill Street enters national markets that have
legally allowed the sale of products using Lexaria's
technologies.
Hill Street's Chairman & CEO, Terry
Donnelly, declared, "When we first began our relationship
with Lexaria it was based on a comprehensive competitive review of
the market with a single uncompromising vision: to find a
technology partner who could provide water soluble cannabis, with
zero impact on the award-winning taste and aroma of our products.
Lexaria has proven themselves time and again to be the ideal
infusion platform for our products, to be committed to continuous
improvement and innovation, and to deliver the best consumer
experience. This partnership takes our relationship to a whole new
level, which we believe will help to set a global standard for
excellence that consumers are looking for in cannabis edibles and
beverages. Our manufacturing partnership will make this technology
available to LP's interested in producing world class edibles,
ensuring our industry is able to provide consumers broad-based
access to this incredible technology in nearly any product
format."
Deal Terms
Under the terms of the agreement, Hill
Street will issue $800K USD in common
shares to Lexaria at the lower of, the market price on the day
prior to the announcement of this agreement or $0.23 CAD per share, and Lexaria will issue
$250K USD in restricted common shares
to Hill Street at the greater of the closing price on the day prior
to grant of Lexaria shares or the day of the grant of Lexaria
shares. In addition, Hill Street will issue an additional
$500K USD in shares at the 10 day
VWAP for each of the first two international markets they enter at
the time such market entry takes place, priced at a minimum of
$0.43 CAD per share, and to a maximum
of $0.66 CAD per share for the first
international market entered and $0.75 CAD per share for the second international
market entered. All of the share issuances described herein are
subject to TSXV and CSE approval, as applicable.
Closing of the Hill Street / Lexaria agreements is subject to
normal regulatory approvals and the closing of the Hill Street /
OneLeaf transaction previously announced by Hill Street.
About DehydraTECH
DehydraTECH produces rapid onset and
stronger peak delivery of orally-ingested cannabis, beginning in as
little as 2 minutes and delivering higher peak blood
concentrations, as proven in third-party lab tests. DehydraTECH has
also been proven to be "Fast-On" and "Fast-Off", with lower
cannabinoid content in blood than some competitor's
nanotech-enabled formulations after 4 hours, leading to a
shorter-duration consumer experience in harmony with consumer
demand.
The technology licensed by Hill Street includes the combined
DehydraTECH with nano-emulsion technology uniquely developed by
Lexaria, that delivers the most advanced beverage performance
currently available. Lexaria's beverage formulation adaptations use
patent-granted technology to deliver predictable experiences for
consumers. Lexaria has already lab-tested Hill Street's
alcohol-free red and white wines to formulate cannabinoid-infused
wines, and such tests show virtually zero cannabis taste or
odour.
About Lexaria
Lexaria Bioscience Corp. has developed
and out-licenses its disruptive delivery technology that promotes
healthier ingestion methods, lower overall dosing and higher
effectiveness of lipophilic active molecules. Lexaria has multiple
patents pending in over 40 countries around the world and has
patents granted in the USA and in
Australia for utilization of its
DehydraTECHTM delivery technology. Lexaria's technology
provides increases in intestinal absorption rates; more rapid
delivery to the bloodstream; and important taste-masking benefits,
for orally administered bioactive molecules including cannabinoids,
vitamins, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine
and other molecules.
www.lexariabioscience.com
About Hill Street Beverage Company Inc. (TSX-V:BEER)
Founded in 2008, Hill Street is the world's most award-winning
company exclusively focused on alcohol-free and cannabis-infused
beer, wine, and adult format beverages. Hill Street's alcohol-free
products include: Hill Street Craft Brewed Lager, Designated
Draft alcohol-free beer, Vin(Zero) wines, and Vintense
wines. Hill Street's award-winning products have won the
Retail Council of Canada's Grand
Prix, and numerous medals and accolades including three Gold, two
Silver, and two Bronze Medals at the U.S. Open Beer Championships,
and a prestigious Double Gold Medal at the San Francisco
International Wine Challenge. As a result of the Royal Assent of
Canada's Bill C-45, legislation to
allow the sale of cannabis-infused beverages is expected to occur
by October 17, 2019. Hill Street is
currently applying for appropriate licenses to permit the
production and sale of cannabis infused beverages in Canada. www.hillstreetbeverages.com
For regular updates, connect with Lexaria on Twitter
(https://twitter.com/lexariacorp) and on Facebook
https://www.facebook.com/lexariabioscience/
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SOURCE Hill Street Beverage Company Inc.
