Lexaria Bioscience Corp. (Nasdaq: LEXX) announced on July 30, 2026, that it will implement a 1-for-15 reverse stock split of its common stock, effective at 12:01 am EST on August 3, 2026. The primary objective of the reverse split is to increase the per-share market price to regain compliance with Nasdaq Capital Market's minimum $1.00 bid price requirement under Nasdaq Listing Rule 5550(a)(2). The company also aims to stabilize uncertain stock conditions as it pursues several critical business drivers.
CEO Richard Christopher emphasized the importance of the reverse split, stating, "The Reverse Split is a critical step towards our continued listing on Nasdaq." He added that conducting the split sooner rather than later is prudent, as 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 noted.
The reverse split will reduce 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. The number of authorized shares will be consolidated from 220,000,000 to 14,666,667, and outstanding convertible securities will be adjusted proportionally, including exercise prices. The company determined the 1-for-15 ratio after examining 24 reverse stock splits by Nasdaq-listed biotech companies from January to June 2026, which had an average ratio of 1-for-18.
Lexaria intends to request a Nasdaq hearing to appeal any delisting notification, anticipating compliance with the minimum bid price by mid-August before the hearing. The shares will continue trading under the symbol LEXX but with a new CUSIP number 52886N604. Shareholders holding physical certificates must contact Computershare Trust Company of Canada at 1-800-564-6253 or corporateactions@computershare.com for procedures.
Lexaria's DehydraTECH technology is a patented drug delivery platform that improves oral drug absorption, reduces side effects, and enhances blood-brain barrier penetration. The company holds 66 patents and operates a licensed research laboratory. This press release contains forward-looking statements regarding research initiatives, regulatory approvals, and potential outcomes, subject to risks including government regulation, competition, and patent processes.
