CannPal Animal Therapeutics Limited announced that following an 18 month evaluation, it has been granted exclusive global rights to commercialise patented MicroMAX® microencapsulation technology by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for use in the field of Animal Therapeutics. MicroMAX® is CSIRO's patented microencapsulation technology platform designed to encapsulate microscopic droplets of oil in a special food grade material, to protect bioactive ingredients from oxidation and help deliver them to the gastrointestinal (GI) tract. Microencapsulation is a process widely used in food and drug manufacturing that protects the integrity of functional ingredients and helps maintain the nutritional value, shelf-life and flavour of the finished product, while enhancing the delivery of the active compounds. CannPal has been evaluating the Technology with CSRIO to develop new and innovative product formats using less regulated compounds from the hemp plant, as part of the Company's near-term revenue generation strategy to support its ongoing pharmaceutical research and development. The 18-month evaluation demonstrated that MicroMAX® can successfully encapsulate CannPals oil formulations with superior protection capabilities and substantial improvement in oxidative stability, enabling CannPal to add hemp and cannabis oils to a wider range of innovative new product applications for companion animals. The licence provides CannPal with the exclusive global rights to apply the Technology to proprietary oil formulations for the development and commercialisation of novel animal health products, using plant-derived compounds from hemp and cannabis. The Company is also pleased to announce that it has confirmed significant anti-inflammatory activity in the hemp-derived oil formulation used during the evaluation of MicroMAX®. Pre-clinical data from an in-vitro canine inflammation model confirmed the oil formulation significantly reduced the expression of pro-inflammatory biomarkers when compared to control (P value <0.0001). The data has been used to file a new patent application, strengthening the Company's growing IP portfolio. Additionally, the formulation contains compounds from the hemp plant which are already approved for use in consumer products, providing CannPal with a path to market for complementary evidence-based product formats without the need for regulatory approval. The Company will commence a small-scale commercial trial to market test a new product format combining MicroMAX® with the anti-inflammatory formulation, in a select consumer group in the first quarter of 2020, to complement CannPals regulatory focused lead products which remain the Company's core priority.