Lexaria Bioscience Secures $3.5 Million in Capital Through Registered Direct Offering

Lexaria Bioscience Corp., a global innovator in drug delivery platforms, has closed a registered direct offering priced at-the-market under Nasdaq rules, raising approximately $3.5 million in gross proceeds. The company sold 2,661,600 shares of common stock at $1.315 per share. In a concurrent private placement, Lexaria issued unregistered warrants to purchase up to 2,661,600 additional shares at an exercise price of $1.19 per share, with these warrants being immediately exercisable and expiring five years from the effectiveness of a resale registration statement.

The capital infusion comes at a critical time for pharmaceutical research and development, particularly in the specialized field of drug delivery systems. Lexaria intends to use the net proceeds to advance its research and development efforts, fund working capital, and support other general corporate purposes. This financial backing could accelerate the development of the company's patented DehydraTECH technology, which improves how various drugs enter the bloodstream through oral delivery by increasing bio-absorption, reducing side effects, and enhancing delivery across the blood-brain barrier.

H.C. Wainwright & Co. served as the exclusive placement agent for the offering. The shares were offered pursuant to a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on January 30, 2025. The offering was made only through a prospectus and prospectus supplement, which were filed with the SEC and are available 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, meaning they and the underlying shares have not been registered under securities laws and cannot be offered or sold in the United States without registration or an applicable exemption.

For the pharmaceutical industry, this funding represents continued investment in innovative drug delivery technologies that could improve patient outcomes and medication effectiveness. Lexaria's DehydraTECH platform has demonstrated potential across multiple drug categories, and additional research funding could lead to broader applications and partnerships. The company maintains a robust intellectual property portfolio with 56 patents granted and additional patents pending worldwide, positioning it as a significant player in the competitive drug delivery space.

The timing of this capital raise suggests confidence in Lexaria's technology and growth trajectory, particularly as the company seeks to expand its research initiatives. For investors and industry observers, the offering provides insight into how biotechnology firms are securing funding to advance promising technologies. The availability of detailed offering documents through the SEC website at https://www.sec.gov allows for transparent evaluation of the transaction's terms and conditions.

As pharmaceutical companies increasingly seek improved delivery methods to enhance drug efficacy and patient compliance, technologies like DehydraTECH could play a crucial role in shaping future treatments. The successful completion of this offering demonstrates market support for Lexaria's approach and provides the financial resources needed to potentially bring innovative solutions to patients worldwide. The company's focus on oral delivery improvements addresses a significant challenge in medicine administration, potentially making treatments more accessible and effective across various therapeutic areas.