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

Lexaria Bioscience Corp. announced the closing of its registered direct offering priced at-the-market under Nasdaq rules, involving 2,661,600 shares of common stock at $1.315 per share. In a concurrent private placement, the company issued unregistered warrants to purchase up to 2,661,600 shares of common stock with an exercise price of $1.19 per share, immediately exercisable and expiring five years from the effectiveness of the resale registration statement. H.C. Wainwright & Co. served as the exclusive placement agent for the offering.

The aggregate gross proceeds to the company from the offering were approximately $3.5 million, before deducting placement agent fees and other offering expenses. Lexaria intends to use the net proceeds to advance its research and development efforts, fund working capital, and for other general corporate purposes. This capital infusion is significant for a biotechnology company focused on drug delivery platforms, as it provides essential resources to continue innovation without immediate pressure for profitability.

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 on January 30, 2025. The registered direct offering was made only by means of a prospectus, including a prospectus supplement, forming part of the effective registration statement. The prospectus supplement and accompanying prospectus were filed with the SEC and are available at the SEC's website at https://www.sec.gov. The warrants were issued in a concurrent private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, and along with the underlying shares, have not been registered under the Securities Act or applicable state securities laws.

This offering matters because it demonstrates investor confidence in Lexaria's technology and growth trajectory during a period where biotech funding can be challenging. The capital will enable the company to further develop its DehydraTECH platform, which aims to improve drug absorption and reduce side effects through oral delivery. For more information about the company's technology, visit https://www.lexariabioscience.com. The ability to secure $3.5 million through a registered direct offering, combined with warrants, provides not only immediate liquidity but also potential future capital if warrants are exercised, offering a strategic financial cushion.

The implications of this announcement extend to Lexaria's operational capabilities and market positioning. With 56 patents granted and additional patents pending worldwide, the funding supports ongoing intellectual property expansion and research initiatives. In the competitive biotech landscape, such financings are crucial for sustaining R&D pipelines and achieving regulatory milestones. The offering's structure, involving both registered shares and private placement warrants, reflects a balanced approach to capital raising that minimizes dilution while providing flexibility for future growth.