Hello Traders & Readers,
We all know that the marijuana industry made a huge splash when it cannonballed into the pool of the OTC Markets.
Now that they’ve been weeded out (no pun intended), only companies with a strong business plan have a chance to survive and continue to grow BIGGER!
That’s where LXRP comes in.
LXRP (Lexaria Corp)
LXRP is in the midst of a major corporate transformation that began with their announcement on March 5, 2014, when they made a strategic entry into the Canadian medical marijuana sector.
Since then they have added staff and consultants with expert knowledge of the sector, and their first license submission to grow and sell medical marijuana in Canada.
LXRP is increasingly focusing their valuable management time on a single corporate target: LXRP wants to help people feel as healthy as they can. Their application to grow and sell marijuana under the regulations in Canada is part of that strategy.
LXRP is on the right path and has an amazing looking business plan. You could see for yourself right here:http://finance.yahoo.com/news/health-wellness-business-plan-lexaria-130000541.html
A wide majority of people in the USA and Canada support uses of medical marijuana AT LEAST for compassionate reasons. Recent polls show a majority of Americans support the legalization of marijuana. Popular medical marijuana stocks are a reflection of the growing support and demand for more medical marijuana facts.
In Canada, the use of marijuana (marihuana for you Canadians!) for medical use has been legal under Federal legislation since 2001. Health Canada established regulations permitting access to cannabis for medical purposes, and the number of persons utilizing that program has skyrocketed over the years. There were 477 medical marijuana patients approved by Health Canada in 2002, and 37,359 in 2013. Health Canada projects up to 58,000 approved patients in 2014 and as many as 450,000 in 2024.
In Canada, as of April 1, 2014, the only legal access to marijuana for medical purposes will be through licensed producers under the Marihuana for Medical Purposes Regulations (MMPR).
In the USA 20 states and the District of Columbia have some form of marijuana legislation. In almost all cases, this is limited to use for qualifying medical conditions, which vary from state to state. Washington and Colorado also allow for all adults 21 years and older to purchase and consume cannabis for Adult Use or recreational use, and Oregon, Alaska, and potentially DC are on their way also!
The US national legal market is estimated at $2.34 billion for 2014, and projected at $10.2 billion within five years. The current illicit market for marijuana is not known with certainty but estimated to be as high as $30 billion in 2014. For comparison, the US wine industry had estimated sales of $34.6 billion in 2012.
BUSINESS SUMMARY
(LXRP - Lexaria Corp / PPS - $.085)
Lexaria Corp. has been in business since 2005 and for nine years explored for and developed oil and gas assets in low-risk areas of North America. Lexaria still owns oil production in Mississippi, producing oil from wells at the Belmont Lake oil field. (You can learn about that in their "Oil Operations" section) During the last three full years combined, their revenue was a total of about $3,550,000.
But North American society has changed dramatically, and so have they. Their proved management team has always employed sensible risk management controls in an effort to preserve the capital entrusted by shareholders.
And today, most Americans and most Canadians support some form of medical use of marijuana, in poll after poll.
They’ve listened to you - at their AGM held in June 2014 there was overwhelming shareholder support to change their business - and they are focusing their considerable management skills to becoming a trusted participant in the legal marijuana sector. It's not as big a leap as you might think: their management team is used to working with State and Provincial governments and regulators. They're also used to working with the Federal Governments of Canada and the USA, and the Securities Commissions within both countries.
Likewise, the legal marijuana industry is and will be heavily regulated, and they support that. They've already proven their ability to be transparent with their stakeholders and their ability to work within all applicable government regulations. They promise to deliver that transparency and dedication to the legal marijuana industry where these traits are a vital component towards ultimate success.
The medical marijuana business just might be one of the most recession-proof industry sectors there are. There is no boom and bust cycle that is apparent. The average demographic age in North America continues to increase, with over 44 million people in the USA today at the age of 65 or over. Age-related illnesses will continue to grow, and some fraction of these people looking for an alternative to opiate-based painkillers have a real need for pain-relief choices.
Lexaria also has a history of working with joint venture partners, as they've demonstrated over the years in Oklahoma, Mississippi, Alberta and Saskatchewan. They're changing the sector, but they're not changing their commitment to best practices; to ethical behavior; and to their investors and shareholders.
Additionally, Lexaria is an oil and gas company engaged in the exploration for oil and natural gas in Canada and the United States. The Company is currently generating revenues from its business operations in Mississippi. One part of the Company’s business plan is to focus on development of the Belmont Lake oil field, in which it has working interests, in order to maximize cash flow and use excess cash flow to pay debt and conduct additional development well drilling. To accomplish this, the Company intends to focus on development drilling first. Eventually the Company will seek a balance between exploration, development and exploitation drilling.
Company Website:
http://www.lexariaenergy.com/home.html
MARKET OUTLOOK
U.S. retail cannabis sales will rise more than five-fold over the next five years, from an estimated $2.2-$2.6 billion in 2014 to $7.4-8.2 billion in 2018, according to new financial data released today in the 2014 edition of the Marijuana Business Factbook.
Although the 2014 estimated sales are right in line with predictions from last year’s edition of the Factbook, the 2018 forecast has risen by roughly $2 billion. This lift is largely due to the impact of last August’s Cole Memorandum wherein the federal Department of Justice stated it would take a hands-off approach to the cannabis industry as long as companies obey local laws and state regulations and oversight are strict.
“You could call it the $2 billion memo,” remarked Chris Walsh, editor at CannaBusiness Media. (Note: CannaBusiness Media is the publisher of both the Marijuana Business Factbook and Marijuana Business Daily.)
“This total is conservative – the reality of retail sales could be larger,” Walsh continued. “Nor does it include wholesale cannabis sales, or the billions of dollars in ancillary cannabusiness revenues such as growing equipment, real estate, legal fees, testing labs, paraphernalia, etc.”
The sales estimates include both medical marijuana and recreational cannabis sales, and account for additional states establishing and launching cannabis sales programs during the time span covered by the forecast. These predictions assume 4-5 new recreational states and 2-3 medical cannabis states will have fully-functional programs by 2018.
Recreational cannabis sales are only legal in two states currently. According to estimates, 2018 is anticipated to be the first year that recreational sales match or even overtake MMJ sales in the U.S.
This data does not include black market sales. However, other research indicates that despite prior industry fears, the majority of cannabis consumers are willing to switch from black market providers when cannabis is legally available in their regions.
The U.S. black market is currently estimated to be in the $40 billion range. Thus, the legal marketplace has significant potential beyond 2018.
http://mmjbusinessdaily.com/new-forecast-u-s-medical-marijuana-and-recreational-cannabis-sales-to-hit-8-billion-by-2018/
INVESTOR HIGHLIGHTS
LXRP appears ready to restart its up-climb to its true potential.
LXRP has made a radical shift of business, preparing to deploy its skills and resources in the most productive way possible, for the benefit of all stakeholders.
Let’s not forget that LXRP is in one of the most recession-proof industry sectors there is.
LXRP’s price per share seems like it could be a real bargain considering their forecasted position in the industry.
LXRP warrants your attention now. Start your own due diligence and see the possible opportunities presented. Always be aware that these OTC markets are quick and volatile and you should never risk more than you could afford lose. 
