Lexaria Bioscience Corp. Are Edible Nicotine Formats Finally - PowerPoint PPT Presentation

Lexaria Bioscience Corp. Are Edible Nicotine Formats Finally Possible? April 24th 2018 www.LexariaBioscience.com LXX:CSE | LXRP:US 1

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 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 Bioscience 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 >>> Advanced Delivery for Bioactive Molecules >>>

Drug Delivery Platform Innovator Lexaria Bioscience has developed a new disruptive drug delivery platform: DehydraTECH™ • Patented technology changes the way Active Pharmaceutical Ingredients (“APIs”) enter the body orally: • Masks unwanted tastes – Eliminates the need for sugar-filled edibles. • Reduces the time of onset – Effects are felt within 15-20 min (vs. 60-120 min). • Avoids first-pass liver metabolism – Mitigating unwanted side effects. • Increases bio-absorption (up to 5-10X) – Equates absorption by inhalational delivery. • DehydraTECH ™ patents covers multiple APIs, e.g.: – Cannabinoids – CBD, THC, etc. – Nicotine (and its analogs), – NSAIDs – Ibuprofen, ASA, etc. • Business Model: – Out-license (royalty) technology to third party partners, – Sales of Lexaria products. 3 >>> Advanced Delivery for Bioactive Molecules >>>

Tobacco Landscape is Shifting July 28, 2017 : November 29, 2017 : March 15, 2018 : March 27, 2018 : FDA announces Reuters: FDA moves to FDA issues an advance notice Health & medical groups comprehensive speed up nicotine of proposed rulemaking sue FDA over e-cigarette regulatory plan to shift replacement product seeking public comment rule delay that allows e- trajectory of tobacco- development through June 14, 2018 for cigarettes to remain on the related disease, death consideration in developing a market for years without nicotine product standard to regulatory review. lower nicotine to non- addictive level. September 28, 2017 : January 25, 2018: March 20, 2018: Philip Morris shuffles Reuters: U.S. panel rejects CNBC: The FDA considers management on its quest Philip Morris claim iQOS (e- banning or restricting toward a smoke-free future cigarettes) reduces disease menthol and other flavors risk from tobacco products. 4 >>> Advanced Delivery for Bioactive Molecules >>>

Nicotine – Good Drug, Bad Delivery? Separating the Dependence from the Harm • Nicotine is highly addictive, but not deadly. • Addictiveness alone doesn't necessarily make a product dangerous. • The burning or combustion of tobacco and other substances inhaled through smoking causes cancer, heart disease and bronchitis.* • 70% of U.S. smokers wish to quit; 50% fail each year; 6% succeed.** "The overwhelming amount of the death and disease attributable to tobacco is caused by addiction to cigarettes. Addiction causes long- term sustained use. But it’s exposure to the harmful chemicals [from combustion] that causes disease.” – FDA Commissioner Dr. Scott Gottlieb *World Health Organization (http://www.who.int) ** Partnership for Drug-Free Kids (https://www.drugfree.org) 5 >>> Advanced Delivery for Bioactive Molecules >>>

Is Nicotine Harmful? FDA Commissioner Dr. Scott Gottlieb Weighs In… • “The issue is not the nicotine, it's the combustion." • “Nicotine's not a completely benign substance but it doesn't cause cancer.” • “If we can get people who want access to nicotine on to medicinal products, for example, or products that don't have all the risks associated with combustion, we can save a lot of lives.“ • "We must make it possible for current adult smokers who still seek nicotine to get it from alternative and less harmful sources.” More Education is Needed… • 41% of U.S. smokers incorrectly believe nicotine in e-cigarettes causes lung cancer* • 39% of U.S. smokers incorrectly believe nicotine in e-cigarettes causes throat cancer* • 38% of U.S. smokers incorrectly believe nicotine in e-cigarettes causes heart disease* • When asked whether moderate daily use of various substances was harmful, more U.S. smokers incorrectly selected nicotine than: sugar, fat, caffeine, alcohol, and salt.* * Survey conducted by Kantar Public, which was engaged by the Foundation for a Smoke-Free World, Inc. 6 >>> Advanced Delivery for Bioactive Molecules >>>

Smoking – A Bad Habit Deeply Integrated • Smoking isn’t just a physical addiction for smokers, it’s also a deeply engrained behavioral , emotional , and social part of their lives.* • People smoke a few minutes after waking up, after a meal , while drinking alcohol , while drinking coffee or tea , and when people around are smoking.* New Nicotine Delivery Solutions are Needed • The FDA is moving to speed up nicotine replacement product development, including easing requirements for approval of over-the-counter nicotine replacement therapies. • “…the FDA intends to be open to innovation and it wants to talk about how to foster that innovation...” - Matthew Myers, president of the Campaign for Tobacco-Free Kids An ingestible nicotine food/beverage product is an eloquent solution and would satiate not only the physical nicotine craving, but also the behavioral, emotional and social aspects. * Survey conducted by Kantar Public, which was engaged by the Foundation for a Smoke-Free World, Inc. 7 >>> Advanced Delivery for Bioactive Molecules >>>

Existing Smoking Alternatives Nicotine Replacement Therapies (NRTs) • Patch : Ineffective; Overlooks behavioral, emotional, and social needs of smokers, 24-hour delivery interferes with sleeping • Oral & Chewing : Ineffective; Gum/mouth diseases; GI distress if swallowed • Prescription Medication : Interferes with brain receptors; Reports of depression, nausea, headaches, difficulty sleeping Vaporizer Devices, Liquid Nicotine, E-Cigarettes • Inconclusive studies on risk & disease reduction and effectiveness in smoking cessation • Some research shows that e-cigarettes are a gateway to regular smoking for adolescents, while other studies show that the liquid vapor may contain harmful, even cancer-causing chemicals. • Despite these concerns, use is on the rise among teens. • "If these trends continue, the viability of the e-cigarettes and vaping products as an alternative for adult smokers could be lost. It just won't be acceptable.” – FDA Commissioner Dr. Scott Gottlieb 8 >>> Advanced Delivery for Bioactive Molecules >>>