Lixte Biotechnology Holdings Inc (NASDAQ:LIXT) saw its shares fall 3.4% on Wednesday after unveiling a registered direct offering that will raise approximately $16.6 million.
Under definitive agreements with accredited investors, Lixte will sell a total of 2,625,362 securities comprising common stock and pre-funded warrants. The securities were priced at $6.31 per share for the common stock portion. The accompanying pre-funded warrants were priced at $0.0001 each, are immediately exercisable, and each warrant conveys the right to acquire one share of common stock.
The company said the transaction was priced at the market under Nasdaq rules. Subject to customary closing conditions, the offering is expected to close on or about June 3, 2026.
Lixte intends to allocate net proceeds from the offering to general corporate purposes, bolster working capital and to support strategic initiatives. The company framed the financing as a move to strengthen its balance sheet and provide flexibility for the next phase of growth. In a statement accompanying the release, Geordan Pursglove, Chief Executive Officer of LIXTE Biotechnology Holdings, said:
"With this financing, LIXTE moves forward with a materially stronger balance sheet and the flexibility to pursue its next phase of growth."
The announcement follows a board appointment earlier this month. Stuart D. Porter, founder of Denham Capital, joined Lixte’s board of directors. The company described Porter as bringing more than three decades of investment experience in the energy and infrastructure sectors.
The offering is being conducted pursuant to an effective shelf registration statement on Form S-3 that Lixte previously filed with the U.S. Securities and Exchange Commission and which was declared effective on May 2, 2024. Sichenzia Ross Ference Carmel LLP served as counsel to the company on the transaction.
Investors and market participants will be watching for the closing of the transaction and how the company applies the proceeds toward its stated purposes. The stock’s intraday reaction reflects immediate market sensitivity to the dilutive aspects of the financing and to capital markets activity in the biotechnology sector.