Lexaria Bioscience Corp. has entered into a definitive agreement for a registered direct offering that is expected to generate approximately $3.5 million in gross proceeds. The company, which trades on NASDAQ under the symbols LEXX and LEXXW, will sell 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. is acting as the exclusive placement agent for the transaction. The capital infusion is significant for Lexaria's ongoing research initiatives. The company stated it intends to use the net proceeds to advance research and development efforts, fund working capital, and for other general corporate purposes. This financial backing could accelerate development of the company's patented DehydraTECH technology, a drug delivery platform designed to improve how pharmaceuticals enter the bloodstream through oral administration.
In a concurrent private placement, Lexaria will issue 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 date of effectiveness of a resale registration statement. The offering is expected to close on or about December 16, 2025, subject to customary closing conditions. The registered shares are being offered pursuant to 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 will be filed with the SEC and available at the SEC's website at https://www.sec.gov. The warrants and underlying shares in the private placement have not been registered under securities laws and may not be offered or sold in the United States except pursuant to an effective registration statement or applicable exemption.
Lexaria's DehydraTECH technology has demonstrated potential to increase bio-absorption, reduce side-effects, and improve delivery of drugs across the blood-brain barrier. The company holds 56 patents granted worldwide with additional patents pending. For more information about the company's technology, visit https://www.lexariabioscience.com. The capital raised through this offering could support further validation and development of this platform, potentially impacting how various medications are delivered and absorbed in the future. This matters because improved drug delivery systems can enhance treatment efficacy, reduce required dosages, and minimize adverse effects for patients across multiple therapeutic areas. The funding enables continued research into a technology that could transform pharmaceutical administration, making treatments more effective and accessible while addressing significant challenges in drug bioavailability and targeted delivery.
