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. This capital infusion is significant as it provides Lexaria with the financial resources to continue developing its core technology without immediate pressure to generate revenue from commercial products.
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 funding matters because it supports the validation and expansion of a platform that could potentially enhance the efficacy and safety profiles of various pharmaceutical compounds, addressing a fundamental challenge in drug development.
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. The importance of this announcement lies in its implications for the future of drug delivery; successful development could lead to more effective treatments with fewer adverse effects, potentially benefiting patients and creating value in the pharmaceutical sector. The offering also reflects investor confidence in Lexaria's intellectual property and research trajectory, providing a runway to achieve key milestones that may attract partnerships or further investment.
