INVESTOR PRESENTATION February 2016
DISCLAIMER This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, evaluation of medical marijuana projects, alternative health projects or products, and cannabidiol-fortified products or services for participation and/or financing, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions that are forward-looking statements. Such forward- looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements including, without limitation, foreign exchange and other financial markets; changes of the forward-looking statements including, without limitation, foreign exchange and other financial markets; changes of the interest rates on borrowings; whether or not the Company will be successful in executing its business plan in whole or in part; hedging activities; changes in commodity prices; changes in the marketing or capital project expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which Lexaria Corp. operates. These and other risks and uncertainties are more fully described in our periodic reports and other disclosure documents filed by Lexaria Corp. from time to time with regulatory authorities available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov, and the reader is encouraged to review these documents. Planned dates stated herein are estimates only, based on best information available. Dates are not assured and are subject to revision without notice. The Company assumes no obligation, except as required by law, to update any forward-looking statement, whether as a result of new information, future events or otherwise. This presentation is not an offer to sell or a solicitation of an offer to buy securities of Lexaria Corp. It is a short summary of certain information for introductory purposes only and is not to be relied upon for investment purposes. No statement within has been evaluated by the Food and Drug Administration, and no product or service is intended to diagnose, treat, cure or prevent any disease. 2
PROBLEM Edible cannabinoids are the most popular method of consumption by consumers, but they are poorly absorbed by our system (1) 100% in… 94% + ...out (1) Karschner et al. (2011) Clin. Chem. 57:66-75 3
SOLUTION Our PATENT-PENDING LIPID-BASED DELIVERY TECHNOLOGY FOR EDIBLES allows for maximum absorption of cannabinoids through the convenience of edibles Flavor masking effects when ingested We combine cannabinoids with fatty acids at a molecular level AND use a proprietary process AND use a proprietary process for enhanced palatability and bioabsorption in the intestines Fatty acids are well absorbed in small intestine 4
OUR FOCUS � We are a food biosciences and consumer goods company � We use our scientifically proven, patent-pending technology to enable improved intestinal bioabsorption of cannabinoids like cannabidiol (CBD) and cannabinoids like cannabidiol (CBD) and tetrahydrocannabinol (THC); also applicable to a host of other bioactive substances � We are currently focused on the development and sale of CBD-rich, hemp-oil infused foods and beverages; federally legal for sale nationwide in the U.S. and many other countries 5
SIX PATENTS PENDING Our Patents Pending Cover: For the Delivery of: • Coffee & Tea • CBD & THC • Hot Chocolate • Vitamins • Meats • Acetaminophen • Gum Arabic • Gum Arabic • Ibuprofen • Ibuprofen • Cookies, Breads, etc • Acetylsalicylic acid (ASA) • Fruits & Nuts • Diclofenac, Indomethacin • Carbonated beverages • Piroxicam • Fruit & Dairy beverages • NICOTINE • Tapioca Starch • …and more 6
PRODUCT PORTFOLIO ViPova™ CBD-Infused Lexaria Energy CBD-Infused Hot Beverages Protein-Energy Bars 7
THERE ARE MANY MEDICINAL BENEFITS OF CANNABIDIOL � Potent activator of human endocannabinoid system � Relieves pain and inflammation � � Combats anxiety / promotes better focus and Combats anxiety / promotes better focus and concentration � Enhances vascular blood flow and performance � Potent antioxidant 8
CANNABIDIOL HUMAN INTESTINAL BIOABSORPTION STUDY � In vitro study ss Tissue Membrane � Third-party laboratory � Human small intestine tissues 325% 325% % Permeability Across 499% 499% Improvement Improvement � Matching CBD content per group � Simulated intestinal fluid buffer applied to all groups CBD CBD ViPova™ CBD-Infused Water Black Tea Black Tea Control Group 1 Control Group 2 9
HUMAN CLINICAL NITRIC OXIDE INDUCTION STUDY � Recent study demonstrated potent CBD bioabsorption in human subjects using nitric oxide salivary biomarker test � Tested ViPova™ Teas, Coffee and Hot Chocolate, as well as Lexaria Energy Foods Chocolate, as well as Lexaria Energy Foods Protein Bars � All subjects demonstrated rapid, significant and sustained increase in salivary nitric oxide levels following product ingestion � Findings have significant implications for health and fitness consumers 10
NITRIC OXIDE MEDICINAL RELEVANCE � � 1998 Nobel Prize discovery that nitric Involved in neurodegenerative oxide is responsible for dilation of disorders such as dementia blood vessels (vasodilation) � Utilized by white blood cells as a � In theory, consumption of a Lexaria weapon against bacteria, fungi, food products utilizing our technology food products utilizing our technology parasites and more parasites and more will allow for more open blood � vessels, delivering more nutrients and Involved in intestinal peristalsis; oxygen to muscles and organs; insulin signaling, bone remodeling, MARKETING ADVANTAGE for fitness respiratory function, and more consumers � Can reduce blood pressure 11
KEY MILESTONES Distribution Added Agreements Six New Initiated Launched ViPova™ ViPova™ Tea Flavors CBD-Black Tea ViPova™ CBD-Coffee Wholesale and Cocoa Sales Efforts Launch Begin Q1, 2015 Q2, 2015 Q3, 2015 Q4, 2015 Q1, 2016 Q2, 2016 Begin Chain Purchasing Lexaria Energy Manager Outreach Protein Bar Launch 12
GROWING NATIONWIDE SALES WA MN NY MI MA PA PA NV OH IL CO CA KY MD NC TN AZ SC GA MS AL TX FL 13
U.S. GROWTH TARGET EXAMPLES 40,000+ Fitness Centers 168,000+ Gas Stations 70,000+ Pharmacies 150,000+ Convenience Stores 15,000+ Wellness Stores 53,000+ Coffee Shops ….and more….. 14
Up To 650,000 Existing Retail Stores Could Carry Our Products � Each Lexaria sales channel is different and demands unique strategies / generates unique returns. � Hemp oil-inclusive food products are federally legal and easily distributed. � � Many “convenience foods” such as standard protein bars sell $50 Many “convenience foods” such as standard protein bars sell $50 - $75 per location, per week. � O ur goal is to have our products available in 10% of them within 5 years. 15
DISTRIBUTION AGREEMENTS INITIATED � Telluride Coffee-House distribution to over 100 Colorado locations began February 2016 began February 2016 � Other distribution partnerships under development in U.S. and internationally 16
OUT-LICENSING OPPORTUNITIES � Evaluating license partners for our technology � For example: THC edible companies � Plan to perform in vitro / in vivo analysis on the molecules named below, to enhance value of potential licensing / named below, to enhance value of potential licensing / partnering � Other compounds named in patent filings beyond cannabinoids: • Nicotine • NSAIDs (e.g., ASA, ibuprofen, etc.) • Vitamins (e.g., vitamin E) • Current markets for these compounds = $1 trillion 17
CAPITAL REQUIREMENTS Debt or Equity Use of Proceeds • Equity with warrant • Expand distribution and sales • Increase production • 4-5 year convertible • Develop additional I.P. through debenture with varied future proprietary R&D conversion price, with floor • Perform new product development • Perform additional in vitro / in vivo testing 18
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