Lexaria Bioscience Corp. (Nasdaq: LEXX) announced today that it will effect a 1-for-15 reverse stock split of its common stock, effective as of 12:01 am EST on August 3, 2026. The move is aimed at increasing the per-share market price to regain compliance with the Nasdaq Capital Market's minimum $1.00 bid price requirement under Listing Rule 5550(a)(2). The reverse split is also intended to stabilize uncertain stock conditions amid critical business developments that management believes are in the best interests of shareholders.
"The Reverse Split is a critical step towards our continued listing on Nasdaq," said Richard Christopher, CEO of Lexaria Bioscience Corp. "We have determined that it is prudent and extremely important that the Reverse Split is conducted sooner rather than later. Nasdaq compliance is impactful to Lexaria on so many levels including our ability to attract new business development partners, advance existing business development discussions, and broaden our overall investor appeal. Recent equity market weakness is at odds with the great potential of our technology, and the Company needs a stable foundation in order to take advantage of existing and upcoming opportunities."
The reverse split will consolidate the company's issued share capital from 24,787,446 shares to approximately 1,652,518 shares, with fractional shares rounded up to the nearest whole number. Authorized shares will be reduced from 220,000,000 to 14,666,667, and the par value of shares will remain unchanged. All outstanding convertible securities, including options and warrants, will be adjusted proportionally, with exercise prices modified accordingly. The company arrived at the 1-for-15 ratio after examining 24 reverse stock splits conducted by Nasdaq-listed biotech companies from January 1 to June 30, 2026, where the average ratio was 1-for-18.
Proactively executing the reverse split near the end of its 180-day compliance period, Lexaria anticipates requesting a Nasdaq hearing to appeal any potential delisting notification and expects to meet the minimum bid price requirement by mid-August. Following the split, shares will continue trading under the symbol LEXX with a new CUSIP number 52886N604. Shareholders holding physical certificates will need to contact Computershare Trust Company of Canada for procedures.
Lexaria's DehydraTECH platform is a patented drug delivery technology that improves oral drug absorption, reduces side effects, and enhances blood-brain barrier penetration. The company holds 66 patents globally and operates a licensed in-house research laboratory. The reverse split underscores the company's commitment to maintaining its Nasdaq listing, which is crucial for attracting partners and investors as it advances its technology.
