Lexaria Bioscience Corp. has closed a registered direct offering, raising approximately $3.5 million in gross proceeds. The company sold 2,661,600 shares of common stock at $1.315 per share in an offering priced at-the-market under Nasdaq rules. H.C. Wainwright & Co. served as the exclusive placement agent for the transaction. In a concurrent private placement, Lexaria issued unregistered warrants to purchase up to 2,661,600 additional shares of common stock. These warrants have an exercise price of $1.19 per share, are immediately exercisable, and will expire five years from the effective date of a resale registration statement.
The company stated it intends to use the net proceeds to advance research and development efforts, fund working capital, and support other general corporate purposes. The shares in the registered direct offering were sold under a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on January 30, 2025. The prospectus supplement and accompanying prospectus are available at the SEC's website at https://www.sec.gov. The warrants and underlying shares from the private placement have not been registered under securities laws and may only be sold under specific exemptions.
Lexaria's core technology is DehydraTECH, a patented drug delivery platform designed to improve how drugs enter the bloodstream through oral administration. The company reports that the technology has demonstrated increased bio-absorption, reduced side effects, and improved delivery across the blood-brain barrier in research. Lexaria maintains an in-house research laboratory and holds 56 granted patents worldwide with additional patents pending. More information about the company and its technology is available at https://www.lexariabioscience.com.
The capital infusion comes as Lexaria continues to develop its drug delivery platform, which has potential applications across multiple therapeutic areas. The funding will support ongoing research initiatives aimed at validating and expanding the uses of DehydraTECH technology. The company's forward-looking statements indicate plans to pursue regulatory approvals and advance scientific discovery, though these outcomes are subject to various risks and uncertainties detailed in securities filings. This financing is significant as it provides essential resources for advancing a technology that could potentially improve drug efficacy and patient outcomes across various medical treatments. The ability to raise capital through both registered and private placements demonstrates investor confidence in the company's strategic direction and technological potential. The development of more effective drug delivery systems represents an important frontier in pharmaceutical science, with implications for treatment accessibility, cost-effectiveness, and therapeutic success rates.
