Lexaria Bioscience Corp. (NASDAQ: LEXX, LEXXW) announced on September 26, 2025, that it has entered into a definitive agreement for a registered direct offering and concurrent private placement, expected to generate aggregate gross proceeds of approximately $4.0 million. The offering includes the sale of 2,666,667 shares of common stock at $1.50 per share, priced at-the-market under Nasdaq rules. Additionally, the company will issue unregistered warrants to purchase up to 2,666,667 shares of common stock at an exercise price of $1.37 per share, exercisable immediately upon effectiveness of a resale registration statement and expiring five years thereafter. H.C. Wainwright & Co. is serving as the exclusive placement agent. The closing is anticipated on or about September 29, 2025, subject to customary conditions.
Lexaria intends to use the net proceeds for working capital and other general corporate purposes. The shares of common stock are being offered under an effective shelf registration statement on Form S-3 (File No. 333-284407), declared effective by the SEC on January 30, 2025. The prospectus supplement and accompanying prospectus will be filed with the SEC and available at www.sec.gov. The warrants issued in the private placement are not registered under the Securities Act of 1933 and are offered under Section 4(a)(2) and Regulation D.
This capital raise is important for Lexaria as it seeks to advance its patented DehydraTECH drug delivery platform, which has shown promise in enhancing bio-absorption, reducing side effects, and improving drug delivery across the blood-brain barrier. The company holds 50 patents globally and operates a licensed in-house research laboratory. The proceeds will support ongoing research initiatives and general corporate needs, potentially accelerating the development of its technology for various therapeutic applications.
The offering reflects investor confidence in Lexaria's technology and its potential to address significant challenges in oral drug delivery. By securing additional funding, the company can continue its research and development activities without immediate financial constraints. The structure of the offering, including the warrants, provides flexibility for future capital if exercised. However, the company cautions that forward-looking statements involve risks and uncertainties, including market conditions, regulatory approvals, and scientific discovery. Investors can find more information about the company and its technology at www.lexariabioscience.com.
