Lexaria Bioscience Corp. has successfully closed a $4.0 million registered direct offering that will provide crucial funding for the company's 2026 research and development initiatives. The global drug delivery platform innovator sold 2,666,667 shares of common stock at $1.50 per share in an offering priced at-the-market under Nasdaq rules. This financing represents a strategic move to strengthen the company's position in the competitive pharmaceutical technology sector while supporting ongoing innovation in drug delivery systems.
The transaction included concurrent issuance of unregistered warrants to purchase up to 2,666,667 additional shares with an exercise price of $1.37 per share. These warrants are immediately exercisable and will expire five years from registration effectiveness, providing additional potential capital infusion for future operations. Chief Executive Officer Richard Christopher emphasized the strategic importance of this financing for the company's future direction, stating that it provides greater optionality for 2026 R&D and business development plans.
Christopher explained that most of the company's study work requires signed contracts before beginning, necessitating constant evaluation of future funding needs. This financing allows Lexaria to bring its 2026 plans into focus and execute on research and development that drives intellectual property and ultimately company value. The capital infusion comes at a critical juncture as Lexaria seeks to expand its DehydraTECH drug delivery platform technology, which represents the core of the company's innovation strategy in pharmaceutical delivery systems.
The net proceeds from the offering will be allocated toward working capital and general corporate purposes, supporting ongoing research initiatives that form the foundation of the company's intellectual property portfolio. H.C. Wainwright & Co. served as the exclusive placement agent for the offering, facilitating the transaction that generated approximately $4.0 million in gross proceeds before deducting placement agent fees and other offering expenses. The offering was conducted under a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on January 30, 2025, with detailed offering documents accessible through the SEC's website at https://www.sec.gov.
The concurrent private placement of warrants was executed under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, meaning these securities and the underlying shares have not been registered under federal or state securities laws and are subject to transfer restrictions. This financing round represents a significant milestone for Lexaria as it prepares for expanded research activities in 2026, with the company's focus on advancing drug delivery technology through systematic research and development underscoring its commitment to building long-term shareholder value through scientific innovation and intellectual property development.
