Wow, LXRP enters Medical Mariuana Industry
Published: Wed, 03/05/14
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Lexaria Corp (LXRP)
Good morning,
Last night I introduced you to LXRP. I hope you had a chance to take a look.
If not, no problem, because I will just direct you to the huge news they just released this morning.
News that could see LXRP trade like crazy today.
Lexaria Enters Joint Venture With Enertopia Corp. in Medical Marihuana IndustryBefore I outline the details, just look at the headline alone... LXRP enters JV with Enertopia Corp (ENRT)... Have you seen how ENRT has traded lately? It has run from $0.05 to $0.45 in just over one month. That's an 800% gain!!!Can LXRP do the same? We are about to find out.
KELOWNA, BC--(Marketwired - Mar 5, 2014) - Lexaria Corp. (OTCQB: LXRP) (CNSX: LXX) (the "Company" or "Lexaria") reports that its board of directors has decided to make a strategic entry into the medical marihuana business by way of an important Joint Venture with Enertopia Corp. (OTCQB: ENRT) (CNSX: TOP). Robert McAllister, CEO and Chair of Enertopia Corp., has also agreed to join the Advisory Board of Lexaria Corp., in order to evaluate and negotiate marihuana acquisitions and joint ventures. Under the terms of the Agreement, Lexaria Corp. has agreed to pay Enertopia 1 million restricted common shares in return for Enertopia's participation. Lexaria has also agreed to pay 500,000 restricted common shares to Mr. McAllister in return for his participation on the Lexaria Advisory Board. Following the issuance of these shares, Lexaria will have a total of 18,431,452 shares issued and outstanding, and 21,256,452 shares fully diluted. "The regulated marihuana industry is attracting large capital flows as investors throughout North America are recognizing this rare opportunity to participate financially in the early days of a brand new industry sector," commented Lexaria President, Chris Bunka. "Although Lexaria has devoted its history exclusively to the oil & gas industry, we have an obligation to shareholders to concentrate on increasing shareholder value, and we believe there is no greater opportunity to achieve this today other than through participation within the regulated marihuana sector." Robert McAllister, President of Enertopia, said, "Enertopia is pleased to welcome Lexaria as its strategic partner in the fast-moving medical marihuana sector. The two companies working together should be able to close on larger marihuana projects that might be out of reach of a smaller company." Lexaria will not participate in Enertopia's pre-existing medical marihuana operations. Instead, Lexaria expects to utilize Enertopia's position as a recognized leader in the industry, to enter new agreements that are accretive to both Enertopia and Lexaria. Lexaria and Enertopia will share a reciprocal Right Of First Refusal so that each company may benefit from exposure to project opportunities sourced by the other company. Health Canada approved producers under the new Medical for Marihuana Regulations Purposes (MMRP) will also be allowed to export to other countries in the world. The new MMRP program is scheduled to be fully in effect on April 1, 2014. Health Canada projects greater than 55% per annum growth in each of the next nine years in the number of licensed customers to a projected total of more than 430,000 by 2024. In 2002, there were only 477 authorized patients in Canada. To illustrate the inherent demand, Health Canada has published actual use data from calendar year 2012. In January 2012 there were 13,781 persons across Canada authorized to possess medical marihuana. By December of 2012 that had increased to 28,115 persons: an increase of more than 100% in a single year. Metrics that interested parties can use to roughly gauge the scope of the industry are that an average patient might use a minimum of 1 gram per day which is 365 grams or 0.8 pounds per year. At an expected price of $7.60 per gram, this equates to potential revenue per patient of $2,774 per year. Another metric used by existing licensed growers of medical marihuana is that each square foot of active growing space will yield in excess of $1,000 per year, in gross revenue, assuming of course that all production that is grown is in fact sold to authorized persons. Lexaria is actively investigating opportunities in this exciting sector and expects to have additional developments to report in the weeks to come. Lexaria Corp. continues to own valuable oil and gas assets at Belmont Lake, Mississippi that produce monthly revenue, and will seek to maximize the value of those assets through all means possible in the months ahead. The Belmont Lake oilfield remains an important cash flow-generating asset. As of October 31, 2013, the most recent independent reserve report prepared by Veazey & Associates, LLC estimated all future cash flows due to Lexaria from Belmont Lake at $5,985,869 (NET, Discounted at 10% per annum) for Proved Reserves; and an additional $805,399 (NET, Discounted at 10% per annum) for Possible Undeveloped Reserves. Remember, trade smart and don't chase a big gap up unless you are confident it can continue to run. Instead, wait for a pullback, consolidation/pause, then a move back higher.
All the best today.
ShiznitStocks.com
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Evening guys & gals,
It did bounce off the $0.0016-0.0017 level I said looked like a good entry opportunity, and went on to hit $0.0021.
This is a multi-day play, and I am still confident about it, so please be patient and let it play out.
With many double/triple digit winners in 2014 already (and only one loser), I hope I have gained your trust and confidence.
Now, I have something new and exciting for you tomorrow...
That company is... Lexaria Corp (LXRP)
LXRP came to my attention today, courtesy of a good friend of mine. I have a feeling this one will definitely be in play and gains will be made.
There are two things I especially like about LXRP:
1/ LXRP has a "virgin" chart... It has not had any news recently, and no major spikes that can often create unhappy shareholders that are waiting for any chance to sell into new buying.
LXRP is a very "clean" ticker that with the right catalyst should trade very well.
2/ LXRP has an extremely low market cap of only $846k.
It's not often we see micro cap companies with this low a market cap, and for this reason, LXRP could resonate well with the investing community.
And at $0.0567, LXRP is trading at less than half of its 52 week high of $0.12
Here's some information about LXRP to wet your appetite, and we are expecting a major update to be announced tomorrow before the bell.
LXRP explores for and develops oil assets in low-risk areas of
North America.
LXRP is currently focused on oil production and
development in Mississippi, producing oil from wells at the Belmont Lake
oil field. Commercial production is 100% oil.
The Company has
strategically increased working interests when it was prudent to do so,
managing risk at all times. Lexaria currently holds 13-50% working
interest in five oil wells at Belmont Lake.
LXRP enjoys superior economics from its exploration and production. Drilling costs for its successful shallow hole Frio wells are inexpensive
and completion times are quick. Reliable and extensive infrastructure
exists, including pipeline gathering systems.
The Company received an average price of
approx $108.71 per barrel of oil sold during 2012. This price is higher
than many North American oil producers due to Lexaria's advantageous
position that allows it to capture an oil price that is closer to global
Brent, than it is to West Texas Intermediate pricing.
LXRP
enjoyed oil netbacks of as much as $63.22 (3rd quarter) per barrel -
and a weighted average of $56.36 during the entire year - higher than
many companies of comparable size amongst its peer group
So, as you can see, LXRP are doing a lot of things right. And this trend looks like it is set to continue.
I am going to keep you updated on LXRP tomorrow morning, so make sure you are up early and ready to go.
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