Lexaria Bioscience Corp (NASDAQ:LEXX) (NASDAQ:LEXXW) (CSE:LXX) said its common stock and warrants will begin trading Tuesday (today) on the Nasdaq Capital Market under the ticker symbols 'LEXX' and 'LEXXW.'
In addition, the company also announced the pricing of an underwritten public offering that could raise up to about $11 million and intends to use the net proceeds for research and development studies, patent and legal costs associated, and general working capital purposes.
Under the scheme, Lexaria is offering 1,828,571 units, with each unit consisting of one share and one warrant to purchase one share at US$5.25 per unit. The shares of common stock and warrants comprising the units are immediately separable and will be issued separately, but will be purchased together.
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The warrants have an exercise price of $6.58 per share, are immediately exercisable, and will expire five years following the date of issuance. The company also has granted the underwriter H.C. Wainwright & Co a 30-day option to purchase up to an additional 274,285 shares of common stock and/or warrants to purchase up to 274,285 shares of common stock.
The gross proceeds of the offering are expected to be about $9.6 million, prior to deducting underwriting discounts and commissions and estimated offering expenses and excluding the exercise of any warrants and the underwriter’s option to purchase additional securities. If the underwriter exercises its option to purchase additional securities in full, the company said it expects to receive about $1.44 million in additional gross proceeds. The offering is expected to close on or about January 14, 2021.
Lexaria noted that all share numbers and pricing information reflect the company’s previously announced 1-for-30 reverse stock split of its common stock, which was effective at 4:30 pm ET on Monday.
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