KELOWNA, BC - Lexaria Bioscience Corp. (NASDAQ:LEXX), a leader in drug delivery platforms, has successfully closed a registered direct offering, generating gross proceeds of approximately $3.6 million. The transaction involved the sale of over 1.5 million shares at $2.31 each, alongside a concurrent private placement of unregistered warrants.
The warrants, immediately exercisable, allow for the purchase of an equivalent number of shares at $2.185 and will expire five years from the date of issuance. H.C. Wainwright & Co. served as the exclusive placement agent for the offering.
The capital raised is earmarked for research and development, particularly studies related to Lexaria's patented DehydraTECH™ technology, as well as for covering patent and legal costs, and general working capital needs.
DehydraTECH™ is Lexaria's proprietary technology that enhances the delivery of active pharmaceutical ingredients (APIs) through oral intake. The technology has demonstrated increased bio-absorption and the potential for more effective drug delivery across the blood-brain barrier, which could be significant for centrally acting compounds.
The offering was conducted under a shelf registration statement on Form S-3, declared effective by the SEC on February 4, 2022. The shares were offered via a prospectus supplement as part of the registration statement.
The unregistered warrants were offered through a private placement in accordance with Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder. These warrants and the underlying shares of common stock have not been registered under the Securities Act or any state securities laws, and therefore cannot be offered or sold in the U.S. without registration or an applicable exemption.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.