Lexaria Bioscience Corp (CSE:LXX) (OTCMKTS:LXRP), announced Wednesday that it has inked an agreement via subsidary Lexaria CanPharm ULC to provide its Dehydratech technology to a private California-based cannabis company for use in certain cannabis-based beverages, which will be produced and sold in California and Nevada.
The Kelowna-headquartered company said in a release that financial terms of the agreement will not be disclosed and the definitive agreement is for five years.
The Dehydratech-enabled beverages are protected under Lexaria's existing US-granted patents and may include any combination of ready-to-drink beverages such as non-alcoholic beers, wines and spirits; cold or hot coffee or teas, sports drinks and more.
Lexaria's technology, Dehydratech, allows cannabidiol (CBD) and other oils to be dehydrated into an odorless, tasteless powder and mixed with xanthan gum, corn flour and other base ingredients which can then be added to foods, drinks and creams.
"Lexaria is currently experiencing unprecedented demand in several North American markets for use of its technology for beverage applications," noted the company in the release.
Lexaria has multiple patents pending in over 40 countries and already has patents in the US and in Australia for Dehydratech.
Shares of Lexaria were at C$1.36 on Wednesday.
Contact Katie Lewis at [email protected]