Lexaria Bioscience Secures $4 Million in Registered Direct Offering to Fund Corporate Operations

Lexaria Bioscience Corp. has entered into a definitive agreement for a $4 million registered direct offering, marking a significant financial development for the global drug delivery platform innovator. The company will sell 2,666,667 shares of common stock at $1.50 per share in an offering priced at-the-market under Nasdaq rules. This transaction represents a strategic move to bolster the company's financial resources during a period of ongoing research and development activities.

The offering structure includes both registered shares and concurrent private placement warrants, creating a comprehensive financing package. In addition to the common stock offering, Lexaria will issue unregistered warrants to purchase up to 2,666,667 additional shares with an exercise price of $1.37 per share. These warrants feature immediate exercisability and a five-year expiration term from the effectiveness of the resale registration statement covering the underlying shares. The transaction's closing is anticipated around September 29, 2025, pending standard closing conditions.

H.C. Wainwright & Co. serves as the exclusive placement agent for this offering, bringing institutional expertise to the capital raising process. The gross proceeds of approximately $4 million will be allocated toward working capital and general corporate purposes after accounting for placement agent fees and other offering expenses. This capital infusion comes at a critical juncture for Lexaria as it continues to advance its DehydraTECH drug delivery platform technology.

The registered portion of the offering operates under an effective shelf registration statement filed with the Securities and Exchange Commission. Investors can access detailed information through the SEC's official website at https://www.sec.gov, where the prospectus supplement and accompanying prospectus will be filed. The warrants and underlying shares issued in the private placement remain unregistered under Securities Act regulations, restricting their transferability except under specific exemptions.

This financing arrangement demonstrates market confidence in Lexaria's business strategy and technological platform. The company's DehydraTECH technology represents a significant advancement in oral drug delivery, with demonstrated capabilities in improving bio-absorption and reducing side effects. The additional capital will support ongoing research initiatives and corporate operations as Lexaria continues to expand its intellectual property portfolio, which currently includes 50 granted patents worldwide.

The offering's structure reflects careful consideration of market conditions and investor demand, with the at-the-market pricing mechanism providing flexibility in execution. While the press release contains forward-looking statements subject to various risks and uncertainties, the successful completion of this offering would represent a meaningful step in Lexaria's corporate development trajectory. The company maintains its research laboratory operations and continues to pursue additional patent protections for its innovative drug delivery technologies.