Lexaria Bioscience Corp. (NASDAQ:LEXX, LEXXW), a global innovator in drug delivery platforms, today announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules. The company issued an aggregate of 2,661,600 shares of its common stock at a purchase price of $1.315 per share, generating gross proceeds of approximately $3.5 million before deducting placement agent fees and other expenses.
In a concurrent private placement, Lexaria issued unregistered warrants to purchase up to 2,661,600 shares of common stock. The warrants have an exercise price of $1.19 per share, are immediately exercisable, and will expire five years from the date of effectiveness of the resale registration statement registering the shares issuable upon exercise of the warrants. H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.
The company intends to use the net proceeds to advance its research and development efforts, fund working capital, and for other general corporate purposes. Lexaria's patented DehydraTECH platform aims to improve the way drugs enter the bloodstream through oral delivery, with evidence of increased bio-absorption, reduced side-effects, and enhanced delivery across the blood-brain barrier. The company holds 56 patents granted and additional patents pending worldwide.
The shares of common stock were offered pursuant to a shelf registration statement on Form S-3 (File No. 333-284407), declared effective by the Securities and Exchange Commission (SEC) on January 30, 2025. The prospectus supplement and accompanying prospectus are available on the SEC's website at www.sec.gov. Electronic copies can also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, or by telephone at (212) 856-5711.
The warrants issued in the private placement were offered under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, and have not been registered under the Securities Act or applicable state securities laws. As such, they may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption.
This announcement is significant for Lexaria as it provides the necessary capital to continue advancing its DehydraTECH platform, which has the potential to improve the efficacy of a wide range of drugs. The company's focus on oral delivery and its strong intellectual property portfolio position it to address significant unmet needs in drug delivery. For more information about Lexaria and its technology, visit www.lexariabioscience.com.
