Lexaria Bioscience Secures $4 Million in Capital to Advance Drug Delivery Technology Development

Lexaria Bioscience Corp. has closed a $4.0 million registered direct offering priced at-the-market under Nasdaq rules, marking a significant financial milestone for the global drug delivery platform innovator. The company sold 2,666,667 shares of common stock at $1.50 per share, with H.C. Wainwright & Co. serving as the exclusive placement agent for the transaction. This capital infusion represents a strategic move to strengthen the company's financial position and accelerate its research and development agenda.

In a concurrent private placement, Lexaria issued unregistered warrants to purchase up to 2,666,667 additional shares of common stock at an exercise price of $1.37 per share. These warrants are immediately exercisable and will expire five years from the date the resale registration statement becomes effective. The combined financial instruments provide both immediate capital and future funding flexibility for the company's operations.

Chief Executive Officer Richard Christopher emphasized the strategic importance of this financing for the company's 2026 planning. "This financing is intended to provide Lexaria with greater optionality for our 2026 R&D and business development plans," Christopher stated. "Most of our study work requires signed contracts prior to ever beginning, therefore we are constantly evaluating our future funding needs. This financing is intended to allow us to bring our plans for 2026 into focus and execute on R&D, which drives our intellectual property and ultimately the value of our Company."

The gross proceeds of approximately $4.0 million, before deducting placement agent fees and other offering expenses, will be allocated toward working capital and general corporate purposes. This financial backing enables Lexaria to advance its DehydraTECH technology platform, which improves drug absorption through oral delivery while potentially reducing side effects and enhancing blood-brain barrier penetration. The company maintains a robust intellectual property portfolio with 50 patents granted worldwide and additional patents pending.

The registered direct offering was conducted under a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on January 30, 2025. Investors can access detailed offering documents through the SEC's official website at https://www.sec.gov. The warrants and underlying shares from the private placement were issued under Section 4(a)(2) of the Securities Act and Regulation D, meaning they are not registered under federal or state securities laws and cannot be offered or sold in the United States without proper registration or applicable exemptions.

This capital raise occurs as Lexaria continues to develop its patented DehydraTECH formulation and processing platform, which has demonstrated the ability to increase bio-absorption of various drugs. The company operates its own licensed research laboratory and maintains an active development pipeline. The successful completion of this offering provides Lexaria with the financial resources to pursue its 2026 objectives while maintaining operational flexibility in the competitive pharmaceutical technology sector.