Lexaria Bioscience Corp. (Nasdaq: LEXX) announced it will implement a 1-for-15 reverse stock split of its common stock, effective 12:01 a.m. EST on August 3, 2026. The move is designed to raise the per-share market price to meet Nasdaq's minimum $1.00 bid price requirement under Listing Rule 5550(a)(2). The company also aims to stabilize uncertain stock conditions as it pursues several critical business initiatives.
Richard Christopher, CEO of Lexaria, emphasized the importance of the reverse split for 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 said. “Nasdaq compliance is impactful to Lexaria on so many levels including our ability to attract new business development partners, advance existing business development discussions, and broaden our overall 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.”
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 decrease from 220,000,000 to 14,666,667, and outstanding convertible securities will be adjusted accordingly. The 1-for-15 ratio was determined after reviewing 24 other reverse splits by Nasdaq-listed biotech firms in the first half of 2026, which averaged 1-for-18.
Lexaria plans to request a Nasdaq hearing to appeal any potential delisting notification and expects to comply with the minimum bid price by mid-August before any hearing occurs. The reverse split does not affect the par value of shares, and shareholders will retain the same percentage ownership. After the split, shares will trade under the same symbol LEXX but with a new CUSIP number 52886N604.
Shareholders with physical certificates should contact Computershare Trust Company of Canada at 1-800-564-6253 or corporateactions@computershare.com for procedures. Lexaria's DehydraTECH™ platform, protected by 66 patents, enhances oral drug delivery by improving bio-absorption and reducing side effects. More information is available at www.lexariabioscience.com.
The company cautions that forward-looking statements involve risks, including regulatory approvals, research outcomes, and market conditions. No assurance exists that the reverse split will achieve its intended goals or that Lexaria's technology will realize its postulated benefits.
