In March 2014 Lexaria Corp (LXRP) announced [1] its intent to enter the medical marijuana industry after eight years of being in the oil & gas business. Nine months later on December 1, Lexaria announced [1] they are in the process of closing a transaction to sell all of their Belmont Lake oil assets.

Lexaria is using the proceeds from the sale to retire all corporate debt, and to further its business pursuits in the medical marijuana market in Canada and the Cannabidiol (CBD) infused products market in the USA.

After the completion of the recent acquisition of PoViva Tea, the sale of oil & gas assets, and the reitring of all corporate debt; Lexaria expects to have a remaining cash balance of around $1 million US.

The Fundamentals

Lexaria has some attractive features that many penny stocks do not. Besides being debt free and having cash on hand the company is an SEC filer [2] , has insider buying, a reasonable outstanding share count, and a diversified business strategy in two emerging growth markets.

As of September 11, 2014 there are 34,249,690 shares outstanding. At a PPS of $0.10 this gives the company a market cap of around $3.5 million. From November 13 to November 21 CEO Chris Bunka purchased [3] 470,405 shares on the public market bringing his total ownership to around 5.2 million shares. The float is 22,400,000 shares.

Most importantly to me as an investor management has delivered more than empty words since their announcement to enter the medical marijuana sector. Click here to see an interview [4] with the CEO, unfortunately it was done before the announcement of the PoViva acquisition.

ABOUT POVIVA TEA

Lexaria recently announced [5] an acquisition of 51% of PoViva Tea. PoViva Tea is a company in its infancy that specializes in delivering CBD infused products. PoViva owns two patents pending that govern the process used to infuse CBD into food products.

Initially the company will sell PoViva teas. Lexaria is also investigating several popular food and drink sectors where their patent pending cannabidiol delivery may prove extremely popular. The company hopes to start rolling out a CBD infused product line in early…

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