Lexaria Bioscience Announces $3.5 Million Capital Raise to Advance Drug Delivery Technology

Lexaria Bioscience Corp., a global innovator in drug delivery platforms, has entered into a definitive agreement for a registered direct offering priced at-the-market under Nasdaq rules. The company will sell 2,661,600 shares of common stock at $1.315 per share, generating expected gross proceeds of approximately $3.5 million before deducting placement agent fees and offering expenses. In a concurrent private placement, Lexaria will issue unregistered warrants to purchase up to 2,661,600 additional shares of common stock with an exercise price of $1.19 per share, exercisable immediately and expiring five years from the effectiveness of the resale registration statement.

The offering's significance lies in its timing and purpose, as Lexaria intends to use the net proceeds to advance research and development efforts, fund working capital, and support other general corporate purposes. This capital infusion comes at a critical juncture for the company's DehydraTECH technology, a patented drug delivery formulation and processing platform that improves how various drugs enter the bloodstream through oral delivery. The technology has demonstrated potential to increase bio-absorption, reduce side effects, and enhance delivery across the blood-brain barrier, positioning Lexaria within the competitive pharmaceutical innovation landscape.

H.C. Wainwright & Co. serves as the exclusive placement agent for the offering, which is expected to close on or about December 16, 2025, subject to customary closing conditions. The shares are being 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 prospectus supplement and accompanying prospectus will be filed with the SEC and available at https://www.sec.gov, providing investors with detailed information about the securities offering.

The concurrent private placement warrants are being issued 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 may only be offered or sold in the United States pursuant to an effective registration statement or applicable exemption. This structure allows Lexaria to access capital markets efficiently while complying with regulatory requirements, demonstrating the company's strategic approach to financing its growth initiatives.

For investors and stakeholders, this offering represents more than just a financial transaction; it signals confidence in Lexaria's technology pipeline and provides the resources necessary to accelerate development of its drug delivery platform. The company's robust intellectual property portfolio, which includes 56 granted patents and additional patents pending worldwide, combined with this new capital, positions Lexaria to potentially advance its research initiatives and pursue regulatory approvals. The offering's completion, expected imminently, will provide the company with additional resources to navigate the complex pharmaceutical development landscape while maintaining its licensed in-house research laboratory operations.