Lexaria Bioscience Completes $2 Million Registered Direct Offering to Advance Drug Delivery Platform

Lexaria Bioscience Corp. completed a registered direct offering of 2,000,000 shares of common stock at $1.00 per share, generating gross proceeds of $2 million. The transaction involved a single institutional investor, with H.C. Wainwright & Co. serving as the exclusive placement agent for the offering. This strategic financing occurred during a period of market challenges, demonstrating the company's ability to secure necessary capital while maintaining shareholder value.

CEO Richard Christopher emphasized the strategic importance of this offering, noting the company's success in obtaining funding despite difficult market conditions. The deal structure was specifically designed to minimize shareholder dilution by limiting warrant issuance to pre-funded warrants rather than traditional warrants that could create additional pressure on share prices. This approach reflects Lexaria's commitment to balancing capital needs with shareholder interests.

The offering was conducted under a previously filed shelf registration statement that had been declared effective by the Securities and Exchange Commission on January 30, 2025. According to the company's announcement, the net proceeds will be allocated toward working capital and general corporate purposes. This funding provides Lexaria with enhanced operational flexibility to continue advancing its core technology platform and research initiatives.

Lexaria's primary focus remains its DehydraTECH drug delivery platform, which has demonstrated significant capabilities in improving oral drug absorption and reducing side effects. The technology platform represents a substantial intellectual property asset for the company, with 48 patents already granted worldwide and additional patents pending across multiple jurisdictions. The DehydraTECH platform continues to show promise across various potential applications in pharmaceutical delivery and formulation.

This financial transaction underscores Lexaria's strategic approach to navigating complex market environments while maintaining momentum in research and development activities. The successful completion of this offering during challenging market conditions highlights investor confidence in the company's technology platform and business strategy. The funding positions Lexaria to continue advancing its innovative drug delivery solutions while managing operational requirements in a competitive pharmaceutical landscape.