Lexaria Bioscience Corp. (NASDAQ: LEXX, LEXXW) announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules, raising gross proceeds of approximately $3.5 million. The offering consisted of 2,661,600 shares of common stock at $1.315 per share, along with a concurrent private placement of warrants to purchase up to 2,661,600 shares at an exercise price of $1.19 per share. H.C. Wainwright & Co. served as the exclusive placement agent.
The company intends to use the net proceeds to advance its research and development efforts, fund working capital, and for other general corporate purposes. The shares were offered under a shelf registration statement on Form S-3 (File No. 333-284407) declared effective by the SEC on January 30, 2025. The prospectus supplement and accompanying prospectus are available at the SEC's website at www.sec.gov.
The warrants issued in the private placement were made under Section 4(a)(2) of the Securities Act and Regulation D, and have not been registered under the Securities Act. They will expire five years from the date of effectiveness of a resale registration statement for the underlying shares. This capital infusion comes as Lexaria continues to develop its DehydraTECH drug delivery platform, which aims to improve oral drug delivery by increasing bio-absorption and reducing side-effects. The company holds 56 patents globally and operates a licensed in-house research laboratory. For more information, visit www.lexariabioscience.com.
The closing of this offering is a significant milestone for Lexaria, providing financial resources to support its ongoing research initiatives. The DehydraTECH technology has shown promise in enhancing the delivery of various drugs, including those targeting the central nervous system. With the additional funding, the company is positioned to further explore its potential applications and advance toward clinical trials.
Forward-looking statements in this release involve risks and uncertainties, including market conditions, regulatory approvals, and the outcome of research studies. The company cautions investors not to place undue reliance on these statements and disclaims any obligation to update them. No statement has been evaluated by the FDA, and Lexaria-associated products are not intended to diagnose, treat, cure, or prevent any disease.
