Lexaria Bioscience Completes $2 Million Direct Offering to Support Drug Delivery Platform Development

Lexaria Bioscience Corp. completed a registered direct offering of 2,000,000 shares of common stock at $1.00 per share, generating gross proceeds of $2 million. The transaction involved a single institutional investor, with H.C. Wainwright & Co. acting as the exclusive placement agent for the deal. This strategic financing occurred during a period of market challenges, demonstrating the company's ability to secure necessary capital while maintaining operational momentum.

CEO Richard Christopher emphasized the strategic importance of the offering, noting the company's success in obtaining funding despite difficult market conditions. The deal structure was specifically designed to minimize shareholder dilution by limiting warrant issuance to pre-funded warrants rather than traditional warrants that could create additional dilution pressure. This approach reflects management's commitment to balancing capital needs with shareholder value preservation.

The offering was conducted under a previously filed shelf registration statement that was declared effective by the Securities and Exchange Commission on January 30, 2025. Lexaria plans to allocate the net proceeds toward working capital requirements and general corporate purposes, providing the financial flexibility needed to continue advancing its core technology platform. The company's DehydraTECH drug delivery platform represents a significant innovation in pharmaceutical technology, having demonstrated capabilities in improving oral drug absorption while reducing side effects across multiple drug classes.

With 48 patents already granted worldwide and additional patents pending, Lexaria continues to develop its proprietary technology across various potential applications. The DehydraTECH platform has shown promise in enhancing the delivery of multiple drug types, potentially offering improved patient outcomes through better bioavailability and reduced adverse effects. This financial transaction underscores Lexaria's strategic approach to maintaining operational flexibility while pursuing research and development initiatives in a complex market environment, positioning the company to continue advancing its technology portfolio without compromising long-term shareholder value.