- Lexaria Bioscience (CSE:LXX) is set to raise up to C$2.82 million through a definitive private placement agreement with certain investors
- The Special Equities Group, a division of Bradley Woods & Co., will act as the exclusive agent for the offering
- 8,978,260 common shares will be issued at a price of $0.32 each, along with 8,978,260 share purchase warrants, exercisable at $0.49 each
- The funds will be used to complete its recently announced human pilot study of the company’s DehydraTECH technology
- Lexaria Bioscience (LXX) is currently up 5.13 per cent to $0.41 per share
Lexaria Bioscience (CSE:LXX) is set to raise up to C$2.82 million through a definitive private placement agreement with certain investors.
Headquartered in Toronto, the company is focused on the development of innovative drug delivery platforms that change the way active pharmaceutical ingredients enter the bloodstream.
The Special Equities Group, a division of Bradley Woods & Co., will act as the exclusive agent for the offering, under which 8,978,260 common shares will be issued at a price of C$0.32 each.
In addition, 8,978,260 common share purchase warrants will be issued with an exercise price of $0.49 each. These warrants will be exercisable immediately following issuance, with an exercise term of five years.
The transaction is expected to close on May 6 this year, subject to the usual closing conditions.
Lexaria intends to use the proceeds to complete its recently announced human pilot study research program into the effectiveness of its DehydraTECH technology.
As a potential drug delivery platform, DehydraTECH is designed to improve the oral bioavailability of certain antiviral drugs, including potential treatments of COVID-19.
On April 21, Lexaria filed a US patent application for DehydraTECH, including both method-of-use and composition-of-matter claims. Patent protection is also being explored in other international markets.
The company says that a portion of the proceeds will also be used to fund the application process for a senior US exchange listing, as well as for general working capital purposes.
Pursuant to the placement agreement with Bradley Woods & Co., Lexaria will pay $217,045.61 in cash and issue 658,087 broker warrants to the company or a nominee of their choosing. These warrants will also have an immediate exercise price of $0.49 each, as well as an exercise term of five years.
Lexaria Bioscience (LXX) is currently up 5.13 per cent to $0.41 per share at 3:50pm EDT.
