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. acted as the exclusive placement agent.
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 expire five years from the effectiveness 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 for other general corporate purposes.
The offering was conducted under a shelf registration statement on Form S-3 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 were issued in a private placement under Section 4(a)(2) of the Securities Act and Regulation D.
For business and technology leaders, this capital infusion signals Lexaria's commitment to scaling its proprietary DehydraTECH technology. This patented drug delivery platform improves how various drugs enter the bloodstream through oral delivery, potentially increasing bio-absorption, reducing side effects, and enhancing delivery across the blood-brain barrier. The company operates a licensed in-house research laboratory and holds 56 granted patents worldwide, with additional patents pending. More information about the technology is available at https://www.lexariabioscience.com.
The implications of this funding extend beyond corporate finance. For the pharmaceutical and biotechnology industries, advancements in drug delivery platforms like DehydraTECH could lead to more effective treatments with fewer adverse effects, potentially improving patient compliance and outcomes. The technology's ability to enhance drug absorption and target delivery to the brain may open new avenues for treating neurological conditions, representing a significant intersection of technology and healthcare innovation.
Lexaria's forward-looking statements indicate the company's focus on research initiatives and regulatory approvals, though these are subject to market conditions, scientific discovery, patent processes, and other risk factors detailed in SEC filings. The capital raise provides resources to navigate these challenges while pursuing technological development that could reshape how medications are formulated and administered globally.
