Lexaria Bioscience Secures $4 Million in Capital Through Registered Direct Offering

Lexaria Bioscience Corp. has entered into a definitive agreement for a $4 million registered direct offering, marking a significant capital infusion for the drug delivery technology company. The offering involves the sale of 2,666,667 shares of common stock at $1.50 per share, priced at-the-market under Nasdaq rules. This financial move provides critical working capital that could accelerate the development and commercialization of Lexaria's patented DehydraTECH drug delivery platform.

The transaction's importance extends beyond immediate financial gains, as the company will also issue unregistered warrants to purchase up to 2,666,667 additional shares at $1.37 per share. These warrants are immediately exercisable and will expire five years from the effectiveness of the resale registration statement. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering, which is expected to close on September 29, 2025, subject to customary closing conditions.

For investors and the pharmaceutical industry, this capital raise signals confidence in Lexaria's technology platform at a time when efficient drug delivery systems are increasingly valuable. The DehydraTECH technology, which improves how drugs enter the bloodstream through oral delivery, has demonstrated potential to increase bio-absorption and reduce side effects. The offering documents are available through the SEC's website at https://www.sec.gov, providing transparency for potential investors examining the company's financial positioning.

The strategic use of proceeds for working capital and general corporate purposes suggests Lexaria is positioning itself for expanded research initiatives and potential commercialization efforts. This funding comes at a crucial juncture for drug delivery technology companies, as the global pharmaceutical industry seeks more efficient methods to administer medications. The company's robust intellectual property portfolio, including 50 granted patents worldwide, adds substantial value to this capital infusion.

Market participants can access detailed offering information through the prospectus supplement and accompanying prospectus filed with the SEC. The regulatory framework governing this offering, including the shelf registration statement on Form S-3 (File No. 333-284407) declared effective on January 30, 2025, provides institutional credibility to the transaction. For additional company information, interested parties can visit https://www.lexariabioscience.com.

This capital raise occurs amid growing investor interest in pharmaceutical innovation companies, particularly those focused on improving drug efficacy and patient outcomes. The immediate exercisability of the warrants provides additional flexibility for investors while potentially creating future capital opportunities for Lexaria. The transaction's structure, combining registered shares with private placement warrants, represents a sophisticated approach to capital formation that balances regulatory compliance with financing efficiency.