viewLexaria Bioscience Corp.

Lexaria Bioscience prices $9.6M public offering as shares set to begin trading on the Nasdaq

It intends to use the net proceeds of the offering, which includes a $1.44 million up-size option, for R&D studies, patent and legal costs, and general working capital purposes

Lexaria Bioscience Corp. - Lexaria Bioscience Corp prices $9.6 million public offering  as its stock begins trading on the Nasdaq
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

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. 

READ: Lexaria Bioscience orders additional coronavirus studies of antiviral drugs delivered using DehydraTECH

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.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

Quick facts: Lexaria Bioscience Corp.

Price: 7.5 CAD

Market: CSE
Market Cap: $38.28 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Lexaria Bioscience Corp. named herein, including the promotion by the Company of Lexaria Bioscience Corp. in any Content on the Site, the...


After successful raise of 11 million dollars, Lexaria Bioscience spells out...

Lexaria Bioscience (NASDAQ: LEXXW- CSE: LXX) CEO Chris Bunka joined Steve Darling from Proactive with news the company is planning for a very busy 2021 with a number of research and development initiatives. Bunka telling Proactive they are planning research on DehydraTECH-CBD For Hypertension...

1 month, 3 days ago

2 min read