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 priced at-the-market under Nasdaq rules. The company will sell 2,661,600 shares of common stock at $1.315 per share, with H.C. Wainwright & Co. acting as exclusive placement agent. The offering is expected to close on or about December 16, 2025, subject to customary closing conditions.

The aggregate gross proceeds are expected to be approximately $3.5 million before deducting fees and expenses. Lexaria intends to use the net proceeds to advance research and development efforts, fund working capital, and for other general corporate purposes. This capital infusion is significant for a biotechnology company focused on pharmaceutical innovation, particularly in drug delivery systems that could improve patient outcomes.

In a concurrent private placement, the company will issue unregistered warrants to purchase up to 2,661,600 shares of common stock with an exercise price of $1.19 per share. These warrants will be immediately exercisable and expire five years from the effectiveness of the resale registration statement. The warrants and underlying shares have not been registered under securities laws and may only be offered or sold in the United States pursuant to an effective registration statement or applicable exemption.

The shares are being 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 offering is being made only by means of a prospectus, including a prospectus supplement forming part of the effective registration statement. Electronic copies of these documents may be obtained from H.C. Wainwright & Co. or accessed at the SEC's website at https://www.sec.gov.

This financing matters because it provides essential resources for Lexaria to advance its DehydraTECH technology, a patented drug delivery platform that improves how drugs enter the bloodstream through oral delivery. The technology has demonstrated potential to increase bio-absorption, reduce side effects, and enhance delivery across the blood-brain barrier. With 56 patents granted and additional patents pending worldwide, continued research funding could accelerate development of more effective pharmaceutical treatments.

The pharmaceutical industry increasingly focuses on improving drug delivery to enhance efficacy and patient compliance. Successful advancement of Lexaria's technology could impact multiple therapeutic areas by making existing drugs more effective or enabling new treatment approaches. For investors and the broader healthcare sector, progress in drug delivery platforms represents potential for improved medical outcomes and commercial opportunities.

Forward-looking statements in the announcement emphasize that actual results may differ due to market conditions, regulatory approvals, competition, and other factors. The company maintains a licensed in-house research laboratory and provides additional information at https://www.lexariabioscience.com. No statements have been evaluated by the Food and Drug Administration, and Lexaria-associated products are not intended to diagnose, treat, cure, or prevent any disease.