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

Lexaria Bioscience Corp., a global innovator in drug delivery platforms, has entered into a definitive agreement for a registered direct offering that is expected to generate approximately $3.5 million in gross proceeds. The company announced the purchase and sale of 2,661,600 shares of its common stock at $1.315 per share, priced at-the-market under Nasdaq rules. This financial move is significant as it provides capital to fuel the company's core research initiatives at a time when funding for biotech innovation remains competitive.

The offering includes a concurrent private placement where Lexaria will issue unregistered warrants to purchase up to 2,661,600 additional shares of common stock. These warrants carry an exercise price of $1.19 per share, are immediately exercisable, and expire five years from the effectiveness of a resale registration statement. The closing is anticipated on or about December 16, 2025, pending customary conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent for the transaction.

Lexaria stated it intends to use the net proceeds to advance research and development efforts, fund working capital, and for other general corporate purposes. This allocation is crucial for the company's DehydraTECH™ platform, a patented drug delivery technology designed to improve how drugs enter the bloodstream through oral delivery. The platform has demonstrated potential to increase bio-absorption, reduce side-effects, and enhance delivery across the blood-brain barrier. The company operates a licensed in-house research laboratory and holds 56 granted patents worldwide, with more pending.

The shares in the registered direct offering are being issued under a shelf registration statement on Form S-3 (File No. 333-284407) declared effective by the Securities and Exchange Commission on January 30, 2025. A prospectus supplement and accompanying prospectus will be filed with the SEC and available at https://www.sec.gov. The warrants and underlying shares in the private placement are not registered under securities laws and are subject to restrictions.

This capital infusion matters because it enables Lexaria to continue developing its drug delivery technology, which could lead to more effective oral medications for various conditions. For the pharmaceutical industry, advancements in delivery platforms like DehydraTECH could streamline drug development, improve patient compliance, and open new treatment avenues. Investors and stakeholders should note that the company's forward-looking statements involve risks, including market conditions, regulatory approvals, and research outcomes, as detailed in its SEC filings. The offering reflects ongoing investor interest in biotech firms with proprietary technologies that address fundamental challenges in medicine.