Lexaria Bioscience Corp (OTCMKTS:LXRP) shares were up 45.27% on Wednesday to $0.284 and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.08 to $0.28. The company has a market cap of of $14.24 million at 51.29 million shares outstanding.
Lexaria Bioscience Corp is a food sciences company thatis focused on the delivery of cannabinoid compounds procured from agricultural hemp, through gourmet foods based on its infusion technologies. Formerly known as Lexaria Corp, the company operates in three segments: oil and gas exploration, medical marijuana and Alternative Health Products. It offers its products under the ViPova and Lexaria Energy brand names and brands use technology to infuse hemp oil ingredients with a lipid in foods.
In yesterday’s press release, Lexaria Bioscience Corp announced that U.S. Patent and Trademark Office has issued Patent No. 9,474,725 for the company’s method of improving bioavailability and taste of certain cannabinoid lipophilic active agents in food products. This marks the company’s first patent from the USPTO, which can protect its intellectual property related to the infusion of cannabinoid compounds in edible products. In particular, the patent covers the method of combining a fatty acid compound with any non-psychoactive cannabinoid for improved bioavailability and taste performance in both food and beverage formats.
This patent comes at an optimal time for Lexaria Bioscience Corp ahead of the November election, which is expected to support legislation favoring the legalization of cannabis-related products in several states. Also, this recent patent is only the first in a series of applications by the company, which has two continuation applications filed with the USPTO pertaining to additional active agents such as psychoactive cannabinoids,fat soluble vitamins, non-steroidal anti-inflammatory drugs, and nicotine.
We are extremely pleased to have received our first patent protecting our proprietary technology,” said Chris Bunka, CEO of Lexaria Bioscience Corp. “I expect our intellectual property portfolio to continue to expand.”
President of Lexaria Bioscience Corp John Docherty added that the rapid issuance of the patent represents a significant advancement for the company, increasing their confidence that their remaining patent applications can also be approved soon. Also, this strengthens their ability to negotiate pending and future technology out-licensing agreements now that they fully understand the requirements for successful patent issuance.
The company has a total of seven other patent applications pending in the U.S. and internationally and approval of these could represent further upside for its stock. At the moment, share prices are already testing the top of its yearly range and could be ready for a break higher on positive updates.
Zooming out to the longer-term weekly time frame shows that the stock is completing a long-term double bottom pattern and is already breaking past the neckline around $0.250. Volume has picked up significantly to reflect stronger investor interest on this bullish potential. A break past the resistance around $0.300 could lead to more gains onto the $0.400 level in the near-term, provided the elections and patent applications turn out in the company’s favor.
On the other hand, setbacks could simply lead to dips and opportunities to buy at cheaper levels. An area of interest is located at $0.200, at which point bulls could be waiting with long orders to add to their current positions. Downside is limited to the $0.100 area while strong bullish momentum could keep this afloat all the way up to the highs around $0.700.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.