Whitefish, MT / September 23, 2014 / Lexaria Corporation, an aspiring Licensed Producer of medical marijuana under Canada's Marihuana for Medical Purposes ("MMPR") program, has made significant progress across several of its projects. The company has also launched a new program to raise awareness of medical marijuana's benefits among physicians and consumers throughout Canada.
In this article, we'll take a closer look at these milestones and where the stock may be headed over the coming quarters.
MMJ Projects Move Forward
Lexaria recently announced that it has submitted an application to become a Licensed Producer under Canada's MMPR program in July 2014 and it's now in the preliminary screening process. Operations manager for Ontario, Mr. Donald Shaxon, is diligently working to progress the project through regulatory approval, while the joint venture has also requested a Ready-to-Build Letter from Health Canada.
The Burlington Joint Venture has applied to produce up to 10,000 kilograms of medical marijuana per year under Canada's MMPR program. Its partner, Enertopia Corp. (OTC: ENRT) has a 51% interest in the project, while Lexaria has a 49% interest in the project. The two have also been actively involved in the local community and working with law enforcement to improve security.
Lexaria's Ottawa project recently completed due diligence on and rejected the initial proposed building location in the Greater Ottawa area, since it was unlikely to comply with the strict requirements of the MMPR program. Management is examining additional locations in order to advance the project and ultimately unlock significant long-term shareholder value in a prudent manner.
Medical Marijuana Awareness Efforts
Lexaria recently announced the launch of a National Medical Marijuana Awareness and Outreach Strategy in conjunction with Maureen McGrath, RN, in order to educate physicians and the public about the benefits of medical marijuana. Ms. McGrath is well known for hosting the popular CKNW Sunday Night Sex Show – a weekly call-in radio program – as well as a number of other radio shows and magazines.
As a part of the plan, Ms. McGrath will be educating physicians, pharmacists, and other healthcare practitioners, as well as the public, on the benefits and cautions related to the responsible use of medical marijuana for patients in need. The company intends for her to reach out via town hall style meetings as well as through media outlets to liaise with those persons with interest in the field.
Ms. McGrath is a well-known healthcare professional and a 2013 YWCA Women of Distinction finalist for health and wellness. She also serves as the Chair of the BC Chapter of Canadian Nurse Continence Advisors and specializes in sexual health for men and women at Cross Roads Clinic in Vancouver, Canada. As well, she serves on the board of the College of Midwives of British Columbia among other organizations.
Oil Well Successes Help Diversify
While the long term goals of the company are to become a licensed MMPR producer such as Organigram (OGI.V)(OTC: OGRMF), having a short term revenue stream helps to diversify risk away from the marijuana industry, particularly given that approval of Lexaria's application to become a MMPR licensed producer has an unknown timeline. With the co-ownership of multiple production oil wells in Belmont Lake, Mississippi, Lexaria has successfully decreased its cash burn rate, while also managing to increase their book value.
On September 16, 2014, the company announced excellent oil production rates at its new PPF-12-7 oil well located at Belmont Lake, Mississippi. The well began producing approximately 120 bbl/d on a 12/64th choke. Flow pressures are increasing each day as the choke size is reduced, indicating healthy reservoir pressures that could improve production over time.
"Taken within the context of this conservative perforation technique and the restriction from the small choke size, I view the oil production rates from this well as even more positive," said Chris Bunka, Lexaria President.
The company retains a 42% working interest in the producing 12-1 and 12-3 wells, a 50% working interest in the suspended 12-4 and 12-5 wells, and a 13.3% working interest in the 12-7 well. Management is now reviewing all possible ways to maximize value from the Belmont Lake oil field assets given that some of them have suspended their operations for the time being.
Looking Ahead
Lexaria represents a unique opportunity within the marijuana industry given its joint venture pipeline of projects and its diversification in the energy industry. Investors in other areas of the marijuana space, including companies like Vape Holdings Inc. (OTC: VAPE) or GreenGro Technologies (OTC: GRNH), may want to take a closer look given these dynamics.
More Information
- Company Website - http://www.lexariaenergy.com/
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SOURCE: Emerging Growth LLC