Lexaria Bioscience Corp. has entered into a definitive agreement for a $4 million registered direct offering, marking a significant financial milestone for the global drug delivery platform innovator. The offering involves the sale of 2,666,667 shares of common stock at $1.50 per share, priced at-the-market under Nasdaq rules, with H.C. Wainwright & Co. serving as exclusive placement agent for the transaction. The financing includes a concurrent private placement where Lexaria will issue unregistered warrants to purchase up to 2,666,667 additional shares of common stock.
These warrants carry an exercise price of $1.37 per share, are immediately exercisable, and will expire five years from the effectiveness of the resale registration statement. The offering is expected to close on September 29, 2025, pending customary closing conditions. The capital infusion represents a strategic move to strengthen Lexaria's financial position as it continues developing its proprietary DehydraTECH technology. The company plans to use the net proceeds for working capital and general corporate purposes, providing essential funding for ongoing research and development initiatives.
The offering's structure, combining registered shares with private placement warrants, demonstrates sophisticated financial engineering aimed at maximizing investor participation while maintaining regulatory compliance. Lexaria's common stock offering is made pursuant to a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on January 30, 2025. Investors can access detailed offering documents through the SEC's website. The warrants and underlying shares issued in the private placement remain unregistered under Securities Act exemptions, restricting their transferability in the United States without proper registration or applicable exemptions.
This financing comes at a critical juncture for Lexaria as the company advances its patented DehydraTECH platform, which improves drug absorption through oral delivery while potentially reducing side effects. The technology has shown promise in enhancing drug delivery across the blood-brain barrier, positioning Lexaria at the forefront of pharmaceutical innovation. With 50 patents granted worldwide and additional patents pending, the company maintains a robust intellectual property portfolio supporting its technology platform.
The successful completion of this offering underscores investor confidence in Lexaria's business strategy and technological capabilities. As the company continues to expand its research initiatives and pursue regulatory approvals, this capital provides essential resources to advance its drug delivery innovations. The transaction's timing reflects strategic financial planning amid evolving market conditions, ensuring Lexaria maintains sufficient resources to execute its corporate objectives.
