LXRP - Lexaria Bioscience Corp. Announces Closing of $11 Million Public Offering with Full Exercise of Underwriter Option to Purchase Additional Shares and Warrants
(TheNewswire)
KELOWNA, British Columbia – TheNewswire - January 15, 2021 – Lexaria BioscienceCorp. (NASDAQ:LEXX) (NASDAQ:LEXXW) (CSE:LXX) (CNSX:LXX.CN) (the “Company”) today announced th e closing of its previously announced underwrittenpublic offering (the “Offering”) of 1,828,571 units, each unitconsisting of one share of common stock and one warrant to purchaseone share of common stock at a public offering price of $5.25 per unit(all prices in US$). The warrants have an exercise price of $6.58 pershare, are immediately exercisable and will expire five years following thedate of issuance . In connection with the Offering, the underwriter exercised infull its option to purchase an additional 274,285 shares of commonstock and additional warrants to purchase 274,285 shares of commonstock. The gross proceeds from the Offering were approximately$11.04 million, before deducting underwriting discounts and estimatedoffering expenses. No securities were offered or sold in Canada,including through the CSE or any other trading market in Canada.
H.C. Wainwright & Co.(“Wainwright”) acted as the sole book-running manager for theOffering and is a non-related party to theCompany.
In connection with the Offering, the Company’s common stock andwarrants began trading on the Nasdaq Capital Market on January 12,2021 under the symbols “LEXX” and “LEXXW,” respectively.
Allshare numbers and pricing information in this press release reflect the Company’s previously announced 1-for- 30 reverse stock split of its commonstock , which waseffective at 4:30 p.m., Eastern time, on January 11, 2021.
TheCompany agreed to pay Wainwright an underwriting discount equal to 8%of the gross proceeds of the Offering and a management fee equal to 1%of the gross proceeds of the Offering, and to reimburse Wainwright fora non-accountable expense allowance of $50,000, up to $100,000 inlegal fees and up to $12,900 for clearing expenses. Additionally, aspartial compensation for Wainwright’s services as underwriter in theOffering, the Company also issued to Wainwright five-year warrants(“Representative Warrants”) to purchase 166,781 shares of commonstock with an exercise price of $6.58 per share.
The securities described above were offered by the Company pursuant toa registration statement on Form S-1 (File No. 333-250326) that waspreviously filed with the U.S. Securities and Exchange Commission (the“SEC”) and declared effective on January 11, 2021, and anadditional registration statement on Form S-1 filed pursuant to Rule462(b) (File No. 333-252031), which became automatically effective onJanuary 11, 2021. This Offering was made only by means of aprospectus. A final prospectus relating to the Offering has been filedwith the SEC. Electronic copies of the final prospectus relating tothe Offering may be obtained for free by visiting the SEC’s websiteat www.sec.gov or by contacting H.C. Wainwright & Co., LLC, 430Park Avenue, 3rd Floor, New York, New York 10022, by email atplacements@hcwco.com or by telephone at (646) 975-6996.
Pursuant to certain tailrights held by Bradley Woods & Co. Ltd., further to theCompany’s May 2020 private placement financing, the Company ispaying Bradley Woods $316,999.62 and issuing to Bradley Woods or itsdesignees five-year warrants to purchase 60,385 sharesof common stock at an exercise price of $6.58 per share.
This press release shall not constitute an offer to sell or asolicitation of an offer to buy these securities, nor shall there beany sale of these securities in any state or other jurisdiction inwhich such offer, solicitation or sale would be unlawful prior to theregistration or qualification under the securities laws of any suchstate or other jurisdiction.
About Lexaria Bioscience Corp.
The Company'sproprietary drug delivery technology, DehydraTECH™, improves the wayactive pharmaceutical ingredients (APIs) enter the bloodstream bypromoting healthier oral ingestion methods and increasing theeffectiveness of fat-soluble active molecules, thereby loweringoverall dosing. The Company's technology can be applied to manydifferent ingestible product formats, including foods, beverages, oralsuspensions, tablets, and capsules. DehydraTECH has repeatedlydemonstrated since 2016 with cannabinoids and nicotine the ability toincrease bio-absorption by up to 5-10x, reduce time of onset from 1 -2 hours to minutes, and mask unwanted tastes; and is planned to befurther evaluated for orally administered bioactive molecules,including anti-virals, cannabinoids, vitamins, non-steroidalanti-inflammatory drugs (NSAIDs), and nicotine. Lexaria has licensedDehydraTECH to multiple companies, including a world-leading tobaccoproducer for the development of smokeless, oral-based nicotineproducts and for use in industries that produce cannabinoid beverages,edibles, and oral products. Lexaria operates a licensed in-houseresearch laboratory and holds a robust intellectual property portfoliowith 18 patents granted and approximately 60 patents pendingworldwide. For more information, please visit www.lexariabioscience.com .
Cautionary Statement Regarding Forward-Looking Statements
Statements in thispress release contain "forward-looking statements" that aresubject to substantial risks and uncertainties. All statements, otherthan statements of historical fact, contained in this press releaseare forward-looking statements. Forward-looking statements containedin this press release may be identified by the use of words such as"anticipate," "believe," "contemplate,""could," "estimate," "expect,""intend," "seek," "may,""might," "plan," "potential,""predict," "project," "target,""aim," "should," "will""would," or the negative of these words or other similarexpressions, although not all forward-looking statements contain thesewords. Forward-looking statements are based on the Company ’s current expectations and are subject to inherentuncertainties, risks and assumptions that are difficult to predict,including statements regarding the intended use of net proceeds fromthe public offering; consequently, actual results may differmaterially from those expressed or implied by such forward-lookingstatements. Further, certain forward-looking statements are based onassumptions as to future events that may not prove to be accurate.These and other risks and uncertainties are described more fully inthe section titled "Risk Factors" in the final prospectusrelated to the public offering filed with the Securities and ExchangeCommission. Forward-looking statements contained in this announcementare made as of this date, and the Company undertakes no duty to update such information except as required underapplicable law.
The CSE has not reviewed and does notaccept responsibility for the adequacy or accuracy of this release.
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