Kelowna’s Lexaria Bioscience has teamed up with tobacco behemoth Altria to fund research and development for oral nicotine.
Altria will provide initial funding of $1 million to Lexaria, which will retain majority equity ownership of Lexaria Nicotine LLC, but has the option to pay an additional $12 million through multiple phased private financings.
Altria is funding research into Lexaria’s DehydraTECH technology with the aim of commercializing oral nicotine products in the United States.
“Lexaria Bioscience is proud that, after careful selection, Altria has chosen to fund research into DehydraTECH technology and potentially commercialize this technology for oral nicotine,” Lexaria Bioscience CEO Chris Bunka said in a press release.
“This partnership will provide significant benefits to Lexaria Bioscience and its shareholders with a world-class R&D program and regulatory compliance process. We believe Altria is the best corporate partner we could work with to truly make a difference in the lives of millions of consumers.”
Altria will pay Lexaria Nicotine a royalty on revenue generated from the sale of nicotine products containing DehydraTECH, until such time it may acquire 100 per cent ownership in Lexaria Nicotine.
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