Lexaria Bioscience Secures $3.5 Million in Capital to Advance Drug Delivery Technology
TL;DR
Lexaria Bioscience's $3.5 million offering provides capital to accelerate its DehydraTECH drug delivery platform, potentially creating investment opportunities in enhanced pharmaceutical absorption.
Lexaria Bioscience closed a registered direct offering of 2,661,600 shares at $1.315 each, with concurrent private placement warrants exercisable at $1.19, raising approximately $3.5 million.
The funding will advance Lexaria's research into DehydraTECH technology, which aims to improve drug delivery and reduce side effects for better patient outcomes worldwide.
Lexaria's DehydraTECH platform uses patented oral delivery to enhance drug absorption across the blood-brain barrier, backed by 56 granted patents globally.
Found this article helpful?
Share it with your network and spread the knowledge!
Lexaria Bioscience Corp. has closed a registered direct offering that generated approximately $3.5 million in gross proceeds. The company sold 2,661,600 shares of common stock at $1.315 per share in an at-the-market offering under Nasdaq rules. H.C. Wainwright & Co. served as the exclusive placement agent for the transaction.
The capital infusion is significant for Lexaria's ongoing research initiatives. The company stated it intends to use the net proceeds to advance research and development efforts, fund working capital, and for other general corporate purposes. This financial backing could accelerate development of the company's proprietary DehydraTECH technology, a drug delivery platform designed to improve how medications are absorbed through oral administration.
In a concurrent private placement, Lexaria issued unregistered warrants to purchase up to 2,661,600 additional shares of common stock. These warrants have an exercise price of $1.19 per share, are immediately exercisable, and will expire five years from the effectiveness of a resale registration statement. The warrants and underlying shares were issued under Section 4(a)(2) of the Securities Act and Regulation D, meaning they are not registered with the SEC and have restrictions on their sale in the United States.
The registered 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 offering were filed with the SEC and are available at the SEC's website at https://www.sec.gov. This regulatory compliance ensures transparency for investors regarding the offering details.
For the pharmaceutical industry and patients, Lexaria's continued funding matters because its DehydraTECH technology aims to improve drug delivery through oral administration. The platform has demonstrated potential to increase bio-absorption, reduce side effects, and enhance delivery across the blood-brain barrier for certain medications. More information about the company's technology and research can be found at https://www.lexariabioscience.com.
The offering represents a strategic move to strengthen Lexaria's financial position during a period of research advancement. While forward-looking statements indicate the company's intentions for the funds, actual outcomes may vary based on market conditions, regulatory approvals, scientific discovery, and other factors detailed in the company's SEC filings. The capital raise positions Lexaria to potentially advance its 56 granted patents and additional pending patents worldwide, though there is no guarantee that postulated benefits of the technology will be realized.
Curated from NewMediaWire
