Lexaria Bioscience Corp. (NASDAQ:LEXX, LEXXW) has completed a registered direct offering priced at-the-market under Nasdaq rules, raising approximately $3.5 million in gross proceeds. The offering included the sale of 2,661,600 shares of common stock at $1.315 per share, along with unregistered warrants to purchase an equal number of shares at an exercise price of $1.19 per share. The warrants are immediately exercisable and expire five years after the effectiveness of a resale registration statement covering the underlying shares.
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering. Net proceeds after fees and expenses are intended to advance the company's research and development efforts, fund working capital, and support other general corporate purposes. Lexaria currently plans to allocate funds to its proprietary DehydraTECH platform, which enhances oral drug delivery by improving bio-absorption, reducing side effects, and enabling more effective transport across the blood-brain barrier.
The registered direct offering was conducted under a shelf registration statement (File No. 333-284407) declared effective by the Securities and Exchange Commission (SEC) on January 30, 2025. The prospectus supplement and accompanying prospectus are available on the SEC's website at www.sec.gov. The warrants issued in a concurrent private placement under Section 4(a)(2) of the Securities Act and Regulation D have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
DehydraTECH, Lexaria's patented drug delivery formulation platform, has demonstrated the ability to increase bio-absorption and deliver drugs more effectively. The company operates a licensed in-house research laboratory and holds a robust intellectual property portfolio with 56 granted patents and additional patents pending worldwide. More information is available at www.lexariabioscience.com.
The closing of this offering provides Lexaria with additional capital to pursue its research initiatives, including potential regulatory approvals and studies. The company's forward-looking statements involve risks and uncertainties, including market conditions, regulatory approvals, and scientific discovery outcomes. Investors are cautioned not to place undue reliance on these statements, which speak only as of the date of the press release.
