Lexaria Bioscience Corp (OTCMKTS:LXRP) (CSE:LXX) has closed its previously announced private placement that raised over US$2 million for a pilot study on its DehydraTECH’s ability to orally deliver antiviral drugs.
The Kelowna, BC-based company is kicking off a human pilot study to look into the effectiveness of the DehydraTECH technology to enhance the oral bioavailability of antiviral drugs that could be used to treat coronavirus (COVID-19) or other infectious diseases. Proceeds from the offering will also be used to fund the application process to list on a senior US exchange.
READ: Lexaria Bioscience drums up over US$2 million from private placement to boost its DehydraTECH technology
"This financing has strategic value to Lexaria over and above the dollars raised," said Chris Bunka, Lexaria’s CEO in a statement. "We expect that our financial needs are now met for the balance of 2020 and include our ability to prepare for a national stock exchange uplisting later in the year.”
Bunka also commended lead agent Special Equities Group, a division of Bradley Woods & Co Ltd, as having done an “excellent job” of introducing Lexaria to new institutional investors during a tumultuous period in the capital markets.
During the first tranche of the offering, which closed May 6, Lexaria issued 8,028,254 shares along with an equal number of warrants to raise US$1,846,498 million. The company closed the second tranche on May 11 after issuing 837,957 shares and an equal amount of warrants for gross proceeds of US$192,730. Each share was priced at US$0.23 and warrants were exercisable at US$0.35 with a five-year expiry date.
The firm paid Bradley Woods & Co US$151,623 and issued 649,124 warrants under the same exercise terms.
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