Lexaria Announces $3.6 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules
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From a financial perspective, Lexaria Bioscience Corp's registered direct offering and concurrent private placement are strategic moves aimed at raising capital. The pricing of shares at $2.31, which is determined according to Nasdaq rules, suggests the offering is at market value. This can be an indicator of the company's current valuation aligning with market perceptions. However, the discount on the exercise price of the warrants at $2.185 could potentially dilute existing shareholders' value if these warrants are exercised. This warrants close attention to the stock's performance post-announcement, as it could lead to increased volatility.
The infusion of capital might be intended for research and development, commercialization efforts, or to strengthen the company's balance sheet. Investors should look at the company's burn rate and the runway these new funds provide. The long-term impact will largely depend on how effectively the company deploys this capital to generate revenue or achieve significant milestones that could enhance shareholder value.
Assessing the drug delivery platform industry, Lexaria Bioscience Corp's capital raise through a direct offering and private placement of warrants is indicative of the company's need to fund its operations without resorting to traditional debt financing. This method of capital raising is quite common in the biotech sector, especially for companies that are in the development phase and may not have a steady revenue stream.
It is important to monitor the reaction of the market to this news. If the market perceives that the capital will be used to accelerate the development of promising drug delivery technologies, we may see a positive response. Conversely, if the market interprets this move as a sign of financial distress or dilution of equity, there could be a negative impact on the stock price. Understanding the competitive landscape and the demand for innovative drug delivery solutions will provide further context to the potential success of Lexaria's strategic initiatives.
In the biotech industry, the success of drug delivery platforms is critical as it can significantly enhance the efficacy and safety profile of therapeutics. Lexaria Bioscience Corp's focus on this area suggests an alignment with industry trends towards more efficient and patient-friendly drug administration methods. The capital raised could be pivotal in advancing their proprietary technologies, which could lead to partnerships, licensing deals, or even buyouts if their platforms prove to be disruptive.
It's crucial to evaluate the company's pipeline and any intellectual property associated with its drug delivery platforms. If Lexaria is able to demonstrate a clear competitive advantage or address unmet needs in the market, the long-term implications for stakeholders could be substantial. On the other hand, any setbacks in development or regulatory challenges could pose risks to the expected outcomes of this capital raise.
KELOWNA, BC / ACCESSWIRE / February 15, 2024 / Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW) (the "Company" or "Lexaria"), a global innovator in drug delivery platforms, today announced that it has entered into definitive agreements for the purchase and sale of 1,558,443 shares of common stock (or common stock equivalents in lieu thereof) at a purchase price of
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
The gross proceeds to the Company from the offering are expected to be approximately
The common stock (or common stock equivalents) (but not the unregistered warrants and the shares of common stock underlying the unregistered warrants) described above are being offered by the Company pursuant to a "shelf" registration statement on Form S-3 (File No. 333-262402) that was declared effective by the Securities and Exchange Commission (the "SEC") on February 4, 2022. The offering of the shares of common stock (or common stock equivalents) is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the registered direct offering will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC's website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, New York 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.
The unregistered warrants described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and/or Regulation D promulgated thereunder and, along with the shares of common stock underlying such unregistered warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the unregistered warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Lexaria Bioscience Corp. & DehydraTECH
DehydraTECH™ is Lexaria's patented drug delivery formulation and processing platform technology which improves the way active pharmaceutical ingredients (APIs) enter the bloodstream through oral delivery. Since 2016, Lexaria has developed and investigated DehydraTECH with a variety of beneficial molecules in oral and topical formats. DehydraTECH has repeatedly demonstrated the ability to increase bio-absorption and has also evidenced an ability to deliver some drugs more effectively across the blood brain barrier, which Lexaria believes to be of particular importance for centrally active compounds. Lexaria operates a licensed in-house research laboratory and holds a robust intellectual property portfolio with 39 patents granted and many patents pending worldwide. For more information, please visit www.lexariabioscience.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements. Statements as such term is defined under applicable securities laws. These statements may be identified by words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions. Such forward-looking statements in this press release include, but are not limited to, statements by the Company relating to the completion of the offering, the satisfaction of customary closing conditions related to the offering, the intended use of proceeds from the offering, and the Company's ability to carry out research initiatives, receive regulatory approvals or grants or experience positive effects or results from any research or study. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that the Company will actually achieve the plans, intentions, or expectations disclosed in these forward-looking statements. As such, you should not place undue reliance on these forward-looking statements. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation and regulatory approvals, managing and maintaining growth, the effect of adverse publicity, litigation, competition, scientific discovery, the patent application and approval process, potential adverse effects arising from the testing or use of products utilizing the DehydraTECH technology, the Company's ability to maintain existing collaborations and realize the benefits thereof, delays or cancellations of planned R&D that could occur related to pandemics or for other reasons, and other factors which may be identified from time to time in the Company's public announcements and periodic filings with the US Securities and Exchange Commission on EDGAR. The Company provides links to third-party websites only as a courtesy to readers and disclaims any responsibility for the thoroughness, accuracy or timeliness of information at third-party websites. There is no assurance that any of Lexaria's postulated uses, benefits, or advantages for the patented and patent-pending technology will in fact be realized in any manner or in any part. No statement herein has been evaluated by the Food and Drug Administration (FDA). Lexaria-associated products are not intended to diagnose, treat, cure or prevent any disease. Any forward-looking statements contained in this release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements or links to third-party websites contained herein, whether as a result of any new information, future events, changed circumstances or otherwise, except as otherwise required by law.
INVESTOR CONTACT:
George Jurcic - Head of Investor Relations
ir@lexariabioscience.com
Phone: 250-765-6424, ext 202
SOURCE: Lexaria Bioscience Corp.
View the original press release on accesswire.com
