Lexaria Releases Annual Letter from the CEO

In This Article:

KELOWNA, BC / ACCESSWIRE / January 13, 2023 / Lexaria Bioscience Corp. (Nasdaq:LEXX) (Nasdaq:LEXXW) (the "Company" or "Lexaria"), a global innovator in drug delivery platforms is pleased to provide an annual letter from CEO, Chris Bunka and a thorough strategic update to all stakeholders.

CEO LETTER TO STAKEHOLDERS

As 2022 came to a close, it isn't news that nearly all companies - not to mention most people - are facing challenges not experienced in years. Lexaria continues to navigate well and is focused on those things it can control such as applied R&D designed to entice others to work with us commercially.

Inflation rates running at 40-year highs have prompted interest rates to rise at the fastest rate in decades with radical changes underway in the economy and in the financial markets. Supply chains everywhere have been disrupted by geopolitical trends, by the pandemic, and sadly, by war in Europe. Stock markets around the world are experiencing the longest protracted decline since 2008, with the technology-heavy Nasdaq exchange down as much as 37% from November 2021 to October 2022.

Despite this, Lexaria is forging ahead. Lexaria has not terminated any staff and in fact our in-house team as well as our external consultant head-count has never been higher, in order to conduct and analyse an unprecedented volume of work. We've managed our growth while exercising excellent fiscal controls and have hit our annual budgets, +/- about 2%, for the last two years running.

Our applied R&D is paying off in spades (even if the stock market does not reflect that.., yet) because we are currently in active discussions with several multi-billion dollar companies around the world, for the potential use of Lexaria's DehydraTECH technology in their commercial product pursuits. We have not disclosed the identities of these companies nor the progress of those relationships because of a lack of materiality and to try to remain responsible to our prospective corporate partners, our shareholders, and to avoid rank speculation. These discussions are ongoing and have thus helped us to meet one of our primary objectives of the last year which is to introduce DehydraTECH to world-leading potential collaborators.

Below I will try to recap our progress of 2022 and indicate why I expect 2023 to be our best year ever. (All dates within this letter refer to calendar periods, not fiscal periods.)

CAPITAL MARKETS

The "price" that development-stage companies like Lexaria pays for capital, is ownership - equity - of our company. That's because we have to issue equity to receive money in our treasury that we use to conduct our operations. After raising roughly US$15 million in 2021, we had no plans to raise additional funds in 2022; and we did not. Thankfully, that deflected some of the hardship associated with the worst conditions in the stock markets in years, which would have been doubly painful had we raised any significant amount of capital at near record-low prices.

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