Lexaria Bioscience Corp. (Nasdaq: LEXX) announced that it will implement a reverse stock split of its common stock, effective at 12:01 am EST on August 3, 2026. The 1-for-15 reverse split aims to raise the per-share market price to meet the Nasdaq Capital Market's minimum $1.00 bid price requirement under Listing Rule 5550(a)(2). The company also seeks to stabilize its stock amid what it describes as critical business drivers.
CEO Richard Christopher emphasized the necessity of the reverse split for continued Nasdaq listing, stating, "The Reverse Split is a critical step towards our continued listing on Nasdaq... 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." The company believes recent equity market weakness does not reflect the potential of its technology and that a stable foundation is needed to capitalize on opportunities.
After the reverse split, Lexaria's issued share capital will consolidate from 24,787,446 shares to approximately 1,652,518 shares, with fractional shares rounded up. The number of authorized shares will reduce from 220,000,000 to 14,666,667, and outstanding convertible securities will be adjusted accordingly. The company noted that the 1-for-15 ratio was determined after reviewing 24 other reverse splits by Nasdaq-listed biotech firms from January to June 2026, which had an average ratio of 1-for-18.
Lexaria intends to request a Nasdaq hearing to appeal any potential delisting notification and expects to comply with the minimum bid price rule by mid-August. The reverse split will not change shareholders' percentage ownership or the par value of shares. Shares will continue trading under the symbol LEXX with a new CUSIP number 52886N604.
Shareholders holding physical certificates must contact Computershare Trust Company of Canada for procedures. The company's DehydraTECH drug delivery platform, protected by 66 patents, aims to improve drug absorption and reduce side effects. This press release contains forward-looking statements subject to risks and uncertainties, including regulatory approvals and research outcomes.
