Lexaria Bioscience Raises $4 Million Via Registered Direct Offering

Lexaria Bioscience Corp., a biotechnology company specializing in drug delivery technology, recently announced a registered direct offering to sell approximately 2.67 million shares of common stock at $1.50 per share, along with unregistered warrants exercisable at $1.37 per share, expecting to raise about $4 million for working capital and general corporate purposes. Concurrently, the company terminated its Capital on Demand Sales Agreement with JonesTrading, which had allowed sales up to $5 million, having raised only $38,236 through sales of 14,995 shares before termination. Following this termination, Lexaria's shares surged 32% in premarket trading. Despite the stock movement, the company faces financial challenges, including a negative operating margin of -1849.84% and declining revenue growth, with a 3-year revenue decline rate of -39.2%. Lexaria operates using its patented DehydraTECH technology to improve oral delivery of pharmaceutical ingredients, mainly cannabinoids and nicotine, with market capitalization around $29.93 million. Analysts currently rate Lexaria stock as a Buy with a $4.00 price target, reflecting cautious optimism despite operational difficulties.