Lexaria Bioscience Corp. announced a registered direct offering of 2,661,600 shares of its common stock at $1.315 per share, priced at‑the‑market under Nasdaq rules, with an expected closing date of December 16, 2025.
The offering includes unregistered warrants to purchase up to 2,661,600 shares at an exercise price of $1.19 per share; the warrants are immediately exercisable and will expire five years from the effective date of the Form S‑3 registration statement.
Gross proceeds of approximately $3.5 million will be used to fund research and development, working‑capital needs, and other general corporate purposes. Lexaria has previously raised capital through similar offerings in April and September 2025, underscoring its reliance on equity financing to support growth.
Lexaria’s core technology, DehydraTECH, is a patented drug‑delivery platform that enhances oral absorption and blood‑brain‑barrier penetration. The company’s most recent 10‑K reports $0.706 million in revenue for the year ended August 31, 2025—an increase of 52% from the prior year—while net loss rose to $11.9 million, reflecting heavy R&D spending and a going‑concern warning.
Management emphasized that the capital raised will extend the company’s runway and support aggressive execution. CEO Chris Bunka noted that the proceeds will help advance key milestones in the DehydraTECH pipeline and maintain momentum in product development.
Investors reacted negatively to the announcement, citing dilution concerns and the offering price being below current market levels. The placement agent for the offering is H.C. Wainwright & Co., and the transaction is made pursuant to a Form S‑3 registration statement effective January 30, 2025.
Lexaria anticipates a decline in licensing revenue in fiscal 2026 due to the expiration of a key license agreement, adding pressure to its financial outlook. The new capital infusion is intended to mitigate these risks and support continued development of its drug‑delivery platform.
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