Lexaria Bioscience Completes $2 Million Registered 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. serving as the exclusive placement agent for the offering. This strategic financing occurred during a period of market challenges, demonstrating the company's ability to secure necessary capital while minimizing shareholder dilution through limited warrant issuance.

CEO Richard Christopher emphasized the strategic importance of this offering, noting the company's successful navigation of difficult market conditions to obtain funding. The deal structure specifically avoided significant shareholder dilution by restricting warrant issuance to pre-funded warrants only. This approach reflects Lexaria's commitment to protecting existing shareholder value while securing the capital needed to advance its corporate objectives. The offering was conducted under a previously filed shelf registration statement that had been declared effective by the Securities and Exchange Commission on January 30, 2025.

The net proceeds from this offering are designated for working capital and general corporate purposes, supporting the continued development of Lexaria's proprietary DehydraTECH drug delivery platform. This technology platform has demonstrated significant capabilities in improving oral drug absorption and reducing side effects across various pharmaceutical applications. With 48 patents already granted worldwide and additional patents pending, the DehydraTECH platform represents a cornerstone of Lexaria's innovation strategy. The platform's potential applications span multiple therapeutic areas, positioning the company for future growth opportunities in the pharmaceutical delivery sector.

This financial transaction underscores Lexaria's strategic approach to maintaining operational flexibility while pursuing research and development initiatives in a complex market environment. The successful completion of this offering during challenging market conditions highlights investor confidence in both the company's management team and the potential of its proprietary drug delivery technology. The funding provides Lexaria with additional resources to continue advancing its technology platform while navigating the competitive landscape of pharmaceutical innovation.