Lexaria Bioscience Secures $3.5 Million in Funding to Advance Drug Delivery Technology

Lexaria Bioscience Corp., a global innovator in drug delivery platforms, announced the closing of a $3.5 million registered direct offering priced at-the-market under Nasdaq rules. The company sold 2,661,600 shares of common stock at $1.315 per share, with H.C. Wainwright & Co. acting as exclusive placement agent.

In a concurrent private placement, Lexaria issued unregistered warrants to purchase up to 2,661,600 additional shares of common stock at an exercise price of $1.19 per share. These warrants are immediately exercisable and will expire five years from the effectiveness of a resale registration statement. The offering's aggregate gross proceeds were approximately $3.5 million before deducting placement agent fees and other expenses.

The company intends to use the net proceeds to advance research and development efforts, fund working capital, and support other general corporate purposes. This funding is significant for Lexaria's continued development of its DehydraTECH technology, a patented drug delivery formulation and processing platform that improves how various drugs enter the bloodstream through oral delivery.

The shares were 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 relating to the securities being offered are available at the SEC's website at https://www.sec.gov. The warrants and underlying shares were issued in a private placement under Section 4(a)(2) of the Securities Act and Regulation D, meaning they have not been registered under securities laws and may not be offered or sold in the United States except under specific exemptions.

This capital infusion matters because it provides Lexaria with resources to potentially accelerate development of its drug delivery technology, which has shown promise in increasing bio-absorption, reducing side-effects, and improving delivery across the blood-brain barrier. For investors and the pharmaceutical industry, successful advancement of such technologies could lead to more effective medications with fewer side effects, potentially transforming treatment approaches for various conditions. The funding also demonstrates continued investor confidence in biotechnology companies developing novel delivery systems, even amid challenging market conditions for early-stage biotech firms.

Lexaria operates a licensed in-house research laboratory and holds an intellectual property portfolio with 56 patents granted and additional patents pending worldwide. More information about the company's technology and research can be found at https://www.lexariabioscience.com. The company's forward-looking statements in the press release emphasize that there is no assurance that postulated uses, benefits, or advantages for the technology will be realized, and no statement has been evaluated by the Food and Drug Administration.