Lexaria Bioscience Corp. (Nasdaq: LEXX) announced it will effect a 1-for-15 reverse stock split of its common stock, effective at 12:01 am EST on August 3, 2026. The primary goal of the reverse split is to increase the per-share market price to regain compliance with the Nasdaq Capital Market's minimum $1.00 bid price per share requirement under Listing Rule 5550(a)(2). The company also aims to stabilize uncertain stock conditions as it pursues critical business opportunities.
The reverse split will reduce Lexaria'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. The number of authorized shares will be reduced from 220,000,000 to 14,666,667, and the exercise prices of outstanding convertible securities will be adjusted accordingly. The company arrived at the 1-for-15 ratio after analyzing 24 other reverse stock splits conducted by Nasdaq-listed biotech companies from January 1 to June 30, 2026, which had an average ratio of 1-for-18.
Richard Christopher, CEO of Lexaria Bioscience, stated, "The Reverse Split is a critical step towards our continued listing on Nasdaq. We have determined that it is prudent and extremely important that the Reverse Split is conducted sooner rather than later." He emphasized that Nasdaq compliance is impactful for attracting new business development partners, advancing existing discussions, and broadening 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," Christopher added.
The company plans to request a Nasdaq hearing to appeal any potential delisting notification, and it expects to meet the minimum bid price requirement by mid-August, before any such hearing takes place. Following the reverse split, the shares will continue trading under the symbol LEXX but will have a new CUSIP number: 52886N604.
Shareholders holding physical certificates will need to contact Computershare Trust Company of Canada for procedures to reflect the reverse split adjustment. The company's DehydraTECH drug delivery platform, which has shown ability to increase bio-absorption and reduce side effects, remains a key asset. Lexaria holds 66 patents granted and additional patents pending worldwide. For more information, visit www.lexariabioscience.com.
