Lexaria Bioscience closes US$700,000 financing to fund research into DehydraTECH

() (OTCMKTS:LXRP) announced Thursday that it raised nearly US$700,000 via the first tranche of a private placement.

The funds raised will go towards research and development of the company’s innovative DehydraTECH drug delivery system as well as general working capital, it said in a statement.

Kelowna, BC-based Lexaria issued nearly 1.6 million units priced at US$0.45 per unit for total proceeds of US$699,410.25.

READ: Lexaria Bioscience recruits Evolution VC Partners founder Gregg Smith as advisor

Each unit consists of one share and one warrant exercisable at US$0.80 until November 13, 2020 and thereafter at US$1.20 for a one-year period, at which point the warrants will expire.

Lexaria said that US$200,000 will be used for research and development of DehydraTECH, with US$50,000 each being spent on sales and marketing and finance and legal fees.

An additional US$75,000 is earmarked for pursuing patent applications, while US$170,000 is set aside for general working capital and US$150,000 for administration costs.

The company paid a finder’s fee of nearly US$4,000 and issued 8,750 warrants exercisable under the same terms as the private placement.

Shares of Lexaria slipped 1.5% at C$0.66 and 3% at US$0.50 on OTC markets on Thursday morning.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas