KELOWNA, BC - Lexaria Bioscience Corp. (NASDAQ:LEXX), a drug delivery platform innovator, has announced a registered direct offering and a concurrent private placement expected to close on or about February 16, 2024. The company is set to sell over 1.5 million shares at $2.31 each, with proceeds estimated at approximately $3.6 million before fees and expenses.
In this transaction, investors will also receive unregistered warrants to purchase an equal number of shares at $2.185 per share, exercisable immediately and expiring in five years. H.C. Wainwright & Co. is the exclusive placement agent for the offering, which is conducted in accordance with Nasdaq rules.
The net proceeds from the sale are earmarked for research and development, patent and legal costs, and general working capital needs. The shares and warrants are being offered through a shelf registration statement previously declared effective by the SEC and are subject to customary closing conditions.
The common stock equivalents and the shares underlying the unregistered warrants have not been registered under the Securities Act or state securities laws, thus they cannot be offered or sold without registration or an applicable exemption.
This news comes as Lexaria continues to develop its patented DehydraTECH technology, designed to enhance the delivery of active pharmaceutical ingredients through oral intake. The company, which has a strong patent portfolio and operates a licensed research laboratory, is focused on improving bio-absorption and the ability to cross the blood-brain barrier.
The information in this article is based on a press release statement.
InvestingPro Insights
As Lexaria Bioscience Corp. (NASDAQ:LEXX) embarks on its latest financial venture with a registered direct offering and a concurrent private placement, the market is observing the company's financial health and growth prospects. According to InvestingPro data, Lexaria currently holds a market capitalization of $27.44 million USD. Despite a negative revenue growth of 17.54% over the last twelve months as of Q1 2024, the company has experienced a substantial one-week price total return of 36.84%.
InvestingPro Tips highlight that analysts are forecasting sales growth in the current year for Lexaria, which could signal investor confidence in the company's potential to scale its operations. Moreover, with an impressive gross profit margin of 92.66% over the last twelve months, Lexaria appears to be maintaining a strong control over its cost of goods sold, which could be pivotal as it seeks to invest in research and development.
On the flip side, Lexaria is not expected to be profitable this year, and with a P/E ratio standing at -3.17, it's clear that profitability remains a challenge. However, the company's ability to generate significant returns over the past week, month, and three months, with figures of 36.84%, 72.19%, and 94.03% respectively, suggests that investors are reacting positively to recent developments or speculating on future success.
For those interested in a deeper dive into Lexaria's financials and future prospects, InvestingPro offers additional insights. There are currently 15 InvestingPro Tips available, which could provide valuable information for making informed investment decisions. To explore these tips further, visit https://www.investing.com/pro/LEXX and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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