Lexaria Bioscience Corp. (OTCQB: LXRP), through its subsidiaries, engages in the production and sale of hemp-enriched tea. The hemp-infused teas are sold under the subsidiary, PoViva Tea LLC. Shares of the hemp tea marker are seeing shares rally 15.79%, during afternoon trading on Thursday, October 27, 2016. Over the past three months, Lexaria Bioscience Corp. has seen average daily volume of 109,140 shares. However, nearly 847,000 shares or dollar volume of $279,510, has already exchanged hands through afternoon trading Thursday.
Shares of Lexaria Bioscience Corp. are rallying Thursday after management has received approval to add incentives for warrant holders to exercise early. If current warrant holders choose to exercise their positions before November 30, 2016, they will receive another warrant that contains the same terms as the warrant that was exercised. The original terms of the warrant state there is a strike price of $0.25 per share and the warrants are set to expire on May 14, 2017. Here is the full press release detailing of the early exercise incentive:
Lexaria Bioscience Corp. Press Release:
KELOWNA, BC / ACCESSWIRE / October 27, 2016 / Lexaria Bioscience Corp. (LXRP) (CSE:LXX) (the “Company” or “Lexaria”) has received approval to offer existing warrant holders an incentive to exercise existing warrants early.
For each existing warrant from the 2015 equity unit financings that is exercised on or before November 30 2016, the placee will receive a second warrant with identical terms to the warrant subscribed for in 2015.
In the case of the May 2015 equity financing, each placee will receive a second warrant to buy one common share of the Company as per the original terms: exercisable at US$0.25 and expiring May 14, 2017.
In the case of the December 2015 equity financing, each placee will receive a second warrant to buy one common share of the Company as per the original terms: exercisable at US$0.30 and expiring Dec 10, 2017.
Only existing warrants that are exercised prior to November 30, 2016 will generate the issuance of a new warrant to replace it. Any existing warrants NOT exercised prior to November 30, 2016 will NOT generate a new replacement warrant. All figures will be adjusted to account for the December 2015 forward stock split.
The securities issued will be subject to a hold period for any resales into the USA under Rule 144, of six months and one day. Up to a total of 6,143,316 warrants qualify for the early exercise incentive. The Private Placement is subject to normal regulatory approvals.
No commissions or placement fees will be paid in the event that any or all of the warrants are exercised. Use of proceeds from any warrants that are exercised will be general corporate purposes.
Separately, the Company has settled an existing US$9,000 debt with a former executive consultant of the firm by issuing 56,250 restricted common shares at an issuance price of US$0.16 per share, as payment in full for the obligation.
The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
About Lexaria Bioscience Corp.
Lexaria Bioscience Corp. is a food biosciences company with a proprietary technology for improved delivery of bioactive compounds. The Company’s lipophilic enhancement technology has been shown to enhance the bioavailability of orally ingested cannabinoids, while also masking taste. This technology promotes healthy ingestion methods, lower overall dosing and higher effectiveness in active molecule delivery. The Company’s technology is patent-protected for cannabidiol (CBD) and all other non-psychoactive cannabinoids, and patent-pending for Tetrahydrocannabinol (THC), other psychoactive cannabinoids, non-steroidal anti-inflammatory drugs (NSAIDs), nicotine and other molecules.