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FAQ: Lexaria Bioscience Corp.'s $3.5 Million Registered Direct Offering and Concurrent Private Placement
TL;DR
Lexaria Bioscience's $3.5 million stock offering provides capital to accelerate its DehydraTECH drug delivery platform, potentially creating investment opportunities in enhanced pharmaceutical absorption.
Lexaria Bioscience issued 2,661,600 shares at $1.315 each in a registered direct offering, with concurrent warrants at $1.19 exercise price, raising approximately $3.5 million for R&D and operations.
This funding supports Lexaria's research into improved drug delivery methods that could reduce side effects and enhance treatment effectiveness for patients worldwide.
Lexaria's DehydraTECH technology uses patented oral delivery methods to help drugs cross the blood-brain barrier more effectively, backed by 56 granted patents globally.
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Lexaria Bioscience Corp. announced it has entered into a definitive agreement for a registered direct offering of 2,661,600 shares of its common stock at $1.315 per share, and a concurrent private placement of warrants to purchase up to 2,661,600 shares of common stock, with expected aggregate gross proceeds of approximately $3.5 million.
The company is offering 2,661,600 shares of common stock at a purchase price of $1.315 per share in a registered direct offering priced at-the-market under Nasdaq rules, with the offering made pursuant to a shelf registration statement on Form S-3 that was declared effective by the SEC on January 30, 2025.
The unregistered warrants have an exercise price of $1.19 per share, are immediately exercisable, and will expire five years from the date of the effectiveness of the resale registration statement registering the shares of common stock issuable upon exercise of the warrants.
The closing of the offering is expected to occur on or about December 16, 2025, subject to the satisfaction of customary closing conditions.
The aggregate gross proceeds to the company from the offering are expected to be approximately $3.5 million, before deducting placement agent fees and other offering expenses.
The company currently intends to use the net proceeds from the offering to advance its research and development efforts, fund working capital, and for other general corporate purposes.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
The prospectus supplement and accompanying prospectus relating to the securities being offered in the registered direct offering will be filed with the SEC and available at www.sec.gov. Electronic copies may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by telephone at (212) 856-5711 or email at placements@hcwco.com.
The warrants are being issued in a concurrent private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, and have not been registered under the Securities Act or applicable state securities laws, meaning they may not be offered or sold in the United States except pursuant to an effective registration statement or applicable exemption.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described, nor shall there be any sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Curated from NewMediaWire
