Lexaria Bioscience Corp. (Nasdaq: LEXX) announced that it will implement a 1-for-15 reverse stock split of its common stock, effective as of 12:01 am EST on August 3, 2026. The primary goal of the reverse split is to increase the per-share market price to regain compliance with Nasdaq's minimum $1.00 bid price requirement under Listing Rule 5550(a)(2). The company also aims to stabilize uncertain stock conditions amid critical business developments.
Richard Christopher, CEO of Lexaria, stated, "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 emphasized that Nasdaq compliance is impactful for attracting new business development partners, advancing existing discussions, and broadening investor appeal. He noted that recent equity market weakness is at odds with the company's technology potential, and a stable foundation is necessary to capitalize on opportunities.
The reverse split will reduce Lexaria'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. Authorized shares will be consolidated from 220,000,000 to 14,666,667, and outstanding convertible securities will be adjusted accordingly. 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 chosen ratio of 1-for-15 is slightly more conservative.
Lexaria plans to request a Nasdaq hearing to appeal any delisting notification, anticipating compliance with the minimum bid price in mid-August before such a hearing occurs. The shares will continue trading under the symbol LEXX with a new CUSIP number. Shareholders holding physical certificates must contact Computershare Trust Company of Canada for instructions.
The reverse split is a proactive measure to address the 180-day compliance period ending soon. By increasing the share price, Lexaria hopes to maintain its Nasdaq listing, which is crucial for its credibility and ability to forge partnerships. The company's DehydraTECH drug delivery platform has shown promise in improving drug absorption and reducing side effects, but market conditions have pressured its stock price. This corporate action aims to align the stock's market performance with the company's technological potential.
For more information, visit Lexaria Bioscience.
