Lexaria Bioscience receives $4.7 million on exercise of warrants

Kelowna, British Columbia – Lacria Biosciences Corp. (NASDAQ: LEXXW), a leader in drug delivery platforms, announced that an accredited investor has successfully exercised warrants for gross proceeds of approximately $4.7 million.

This financial move involves the full exercise of existing warrants for 2,917,032 shares of common stock, with 1,618,330 warrants at $0.97 per share, 1,298,702 warrants at $2.185 per share, no remaining warrants at $0.97 and 259,741 Shares are outstanding at $2.185 per share.

In return for the early exercise of the warrants, Lexaria is issuing 2,917,032 new warrants at an exercise price of $4.75 per share, which are immediately exercisable and will expire on February 16, 2029.

The company's chief executive, Chris Bunka, said the funds raised will extend the company's operating runway to 2025 and support aggressive execution of plans for 2024. The future is full of confidence.

The new warrants are part of a private placement under certain provisions of the Securities Act of 1933 and have not been registered under that Act or any state securities laws. Therefore, they may not be sold in the United States without registration or an exemption from registration requirements. Lexaria has committed to file a registration statement for the resale of the shares of common stock covered by the new warrants.

As part of the agreement, Lexaria is obligated to provide HC Wainwright 6% of the cash proceeds from the exercise and issuance of the warrants and to issue 102,097 additional warrants with similar terms at an exercise price of $5.9375 per share.

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The net proceeds from the transaction will be used for working capital and general corporate purposes. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities and is based upon press release statements.

Lexaria's patented DeHydraTECH technology improves the delivery of active pharmaceutical ingredients (APIs) into the bloodstream and potentially across the blood-brain barrier. The company has a large intellectual property portfolio and continues to explore the capabilities of its technology in various forms.

Investment Professional Insights

Lexaria Bioscience Corp. is navigating a dynamic financial landscape, as evidenced by its recent warrant exercise transaction. To get a clearer picture of a company's financial health and market performance, here are some of InvestingPro's key metrics and insights:

  • The Company has a healthy liquidity position, Current assets exceed short-term debt and hold More cash than debt on the balance sheet.
  • Despite challenging environment, analysts remain optimistic about Lexaria, predicting Sales growth this year.
  • Market performance shows Notable returns last week 9.82%, plus Strong returns over the past three months 65.1%.

InvestingPro Tips show that although Lexaria burn cash quicklyit has been able to generate a Prices have risen sharply in the past six months. Still, analysts don't expect the company to be profitable this year, and the stock underperformed last month, returning -32.23%.

These tips and more can be found at InvestingPro, a site that provides comprehensive analysis of companies like Lexaria.For those interested in learning more, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount. There are 11 additional InvestingPro Tips listed on the platform, providing valuable insights for investors considering Lexaria.

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Lexaria has a market capitalization of $38.91 million and a negative price-to-earnings ratio, with its financials reflecting its current stage of growth and the speculative nature of its market success. As of the second quarter of 2024, the company's revenue in the last 12 months was $0.4 million, representing a significant revenue growth of 23.16%. It's important for investors to consider these numbers when assessing a company's potential and the risks involved.

As Lexaria continues to advance its DeHydraTECH technology and expand its intellectual property portfolio, keeping a close eye on these financial metrics and expert analysis is critical for stakeholders and potential investors.

This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.

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