Lexaria Corp. [stockquote symbol=LXRP], an aspiring licensed producer of medical marijuana under Canada’s MMPR program, recently announced that its Burlington MMPR joint venture has advanced to the Enhanced Screening stage of the application process. Concurrent with this stage, the company has requested a Ready to Build letter from Health Canada once it has completed Step 4.
The seven-step process includes:
- Preliminary Screening (completed)
- Enhanced Screening (underway)
- Security Clearance
- Ready to Build Letter
- Pre-License Inspection
The Burlington Joint Venture with Enertopia Corp. [stockquote symbol=ENRT] – which owns 51% of the project – has applied to produce 10,000 kilograms of medical marijuana per year. If completed and operational, the project could generate revenue of $80 million per year, assuming a selling price of $8 per gram. Enertopia’s piece of the pie would be approximately $40 million per year.
In the local community, the joint venture has been active in working with the policing authority to conduct security and SWAT team training at the facility. The community has also been very supportive of the project given its potential to generate local employment opportunities and bring potentially significant tax revenue to the local municipality and regional governments.
In November, Health Canada updated the number of licensed producers to grow and sell marijuana to 14 and the number of licensed products to grow marijuana at 8, for a total of 22 licensed producers in the country. The regulatory body has received thousands of applications that have translated to long approval times, but the new batch of approvals is a sure sign that the wheels are still in motion.
In addition to its joint venture, Lexaria has been actively expanding into the alternative health sector with its PoViva agreement. PoViva has two pending patents that govern the process of infusing CBDs into food products by binding active ingredients with lipids. Over the coming quarters, the company plans to launch a CBD-infused tea products as the first of many leveraging the technology.
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