Lexaria Bioscience Corp. (Nasdaq: LEXX) announced 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 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 requirement under Listing Rule 5550(a)(2). The company also aims to stabilize uncertain stock conditions in the face of several critical business drivers that management believes are in the best interests of shareholders.
Richard Christopher, CEO of Lexaria, 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 impacts Lexaria's ability to attract new business development partners, advance existing discussions, and broaden 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 reverse split will consolidate the company's current issued share capital of 24,787,446 shares into 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 outstanding convertible securities will be adjusted proportionally. In determining the 1-for-15 ratio, Lexaria examined 24 other reverse stock splits by Nasdaq-listed biotech companies from January 1 to June 30, 2026, where the average ratio was 1-for-18.
By proactively performing the reverse split near the end of its 180-day compliance period, the company anticipates requesting a Nasdaq hearing to appeal any potential delisting notification and expects to meet the minimum bid price requirement by mid-August before any such hearing. Following the reverse split, shares will continue trading under the symbol LEXX with a new CUSIP number 52886N604.
Shareholders holding physical certificates should contact the transfer agent, Computershare Trust Company of Canada, for details on the exchange process. Lexaria's patented DehydraTECH drug delivery platform has shown promise in improving bio-absorption and reducing side effects for various drugs. The company holds a robust intellectual property portfolio with 66 patents granted and additional patents pending worldwide. More information is available at www.lexariabioscience.com.
