Lixte Biotechnology Holdings Inc. (NASDAQ:LIXT) shares slipped 2.5% after the company announced a $4.3 million registered direct offering priced at the market in accordance with Nasdaq regulations.
The oncology-focused biotech firm entered into binding agreements with accredited investors to sell common stock and accompanying warrants at $4.09 per unit. In total, the offering comprises 1,051,342 units, each including either one share of common stock or a pre-funded warrant, along with one common warrant that allows the purchase of an additional share at an exercise price of $3.96.
The pre-funded warrants are immediately exercisable at a nominal exercise price of $0.00001 per warrant. The common warrants are also exercisable immediately and will remain outstanding for 60 months following issuance.
Spartan Capital Securities, LLC is acting as the exclusive placement agent for the transaction, which is expected to close on or around December 19, 2025, subject to standard closing conditions.
Lixte said the net proceeds, together with its existing cash balance, will be used for general corporate purposes and working capital needs. The decline in the share price reflects a typical investor response to equity financings that may dilute existing shareholders.