Lexaria Bioscience Corp. (Nasdaq: LEXX) announced it will effect a 1-for-15 reverse stock split of its common stock, effective 12:01 am EST on August 3, 2026. The primary objective is to raise 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 reverse split is also intended to stabilize uncertain stock conditions as the company pursues several critical business drivers believed to be in shareholders' best interests.
CEO Richard Christopher emphasized the urgency, stating, "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." Christopher noted that Nasdaq compliance impacts Lexaria's ability to attract new business development partners, advance existing discussions, and broaden investor appeal. He added that recent equity market weakness contrasts with the company's technological potential, necessitating a stable foundation to capitalize on opportunities.
The reverse split will consolidate the 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. Authorized shares will be reduced from 220,000,000 to 14,666,667, and outstanding convertible securities will be adjusted accordingly. The company determined the 1-for-15 ratio after reviewing 24 reverse splits by Nasdaq-listed biotech firms from January to June 2026, which had an average ratio of 1-for-18.
Lexaria plans to proactively perform the reverse split near the end of its 180-day compliance period, then request a Nasdaq hearing to appeal any delisting notification. The company expects to meet the minimum bid price requirement in mid-August before any hearing occurs. Shares post-split will trade under the same symbol LEXX but with a new CUSIP number 52886N604. Shareholders with physical certificates must contact Computershare Trust Company of Canada at Computershare for procedures.
Lexaria's patented DehydraTECH drug delivery platform aims to improve oral drug absorption, reduce side effects, and enhance blood-brain barrier penetration. The company holds 66 patents and operates a licensed research lab. For more information, visit Lexaria Bioscience.
