Lexaria Bioscience Corp. (Nasdaq: LEXX) announced today 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 move is designed 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 reverse split will reduce the company's issued shares from 24,787,446 to approximately 1,652,518, with fractional shares rounded up to the nearest whole number. Authorized shares will be consolidated from 220,000,000 to 14,666,667, and the par value remains unchanged. All outstanding convertible securities, including options and warrants, will be adjusted accordingly, with their exercise prices modified.
CEO Richard Christopher emphasized the strategic importance of the reverse split, 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." He added that Nasdaq compliance is vital for attracting business development partners, advancing discussions, and broadening investor appeal, noting that recent equity market weakness does not reflect the company's technology potential.
The company examined 24 reverse stock splits by Nasdaq-listed biotech firms from January to June 2026, finding an average ratio of 1-for-18. Lexaria's 1-for-15 ratio is slightly more conservative. By executing the split before the end of its 180-day compliance period, Lexaria plans to request a Nasdaq hearing to appeal any potential delisting notification, expecting to meet the minimum bid price requirement by mid-August.
Following the reverse split, shares will continue trading under the symbol LEXX but will have a new CUSIP number 52886N604. Shareholders holding physical certificates must contact Computershare Trust Company of Canada for procedures. The company noted that all shareholders will retain the same percentage ownership after the split.
Lexaria's DehydraTECH™ platform, protected by 66 patents globally, is a patented drug delivery technology that enhances oral drug absorption, reduces side effects, and improves blood-brain barrier penetration. The company operates a licensed in-house research laboratory and continues to advance its intellectual property portfolio.
Forward-looking statements in the release caution that actual results may differ due to risks including regulatory approvals, competition, and patent processes. The company disclaims any obligation to update these statements except as required by law.
For more information, visit Lexaria Bioscience or view the original release on NewMediaWire.
