Lexaria Bioscience Corp. (Nasdaq: LEXX), a global innovator in drug delivery platforms, announced that it will effect a 1-for-15 reverse stock split of its common stock, effective as of 12:01 am EST on August 3, 2026. The move is designed to increase the per share market price of the company’s shares to regain compliance with Nasdaq’s minimum $1.00 bid price per share requirement under Listing Rule 5550(a)(2).
According to the company, the reverse split is also intended to stabilize uncertain stock conditions in the face of several critical business drivers that management believes are in the best immediate and long-term interests of shareholders. “The Reverse Split is a critical step towards our continued listing on Nasdaq,” said Richard Christopher, CEO of Lexaria Bioscience Corp. “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 on many levels, including the ability to attract new business development partners, advance existing discussions, and broaden 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,” he added.
The reverse split will consolidate the company’s current issued share capital of 24,787,446 shares of common stock into approximately 1,652,518 shares, subject to adjustment for fractional shares, which will be rounded up to the nearest whole number. The number of authorized shares will also be reduced from 220,000,000 to 14,666,667, while the par value remains unchanged. Additionally, issued convertible securities such as options and warrants will be adjusted accordingly, with exercise prices modified to reflect the split.
In arriving at the 1-for-15 ratio, Lexaria examined 24 other reverse stock splits conducted by Nasdaq-listed biotech companies from January 1 to June 30, 2026, noting that the average reverse split ratio was 1-for-18. The company plans to proactively request a Nasdaq hearing to appeal any delisting notification, and it expects to comply with the Minimum Price Rule in mid-August before any such hearing takes place.
Following the reverse split, the resulting shares will continue to trade under the symbol LEXX but will bear a new CUSIP number: 52886N604. Shareholders holding physical certificates must contact Computershare Trust Company of Canada for procedures. The company’s patented DehydraTECH platform, which improves drug delivery through oral administration, remains a key asset, with 66 patents granted and additional patents pending worldwide.
This development matters because maintaining a Nasdaq listing is crucial for Lexaria’s visibility and credibility in the biotech space. A stable stock price and compliance with exchange requirements can facilitate partnerships, research funding, and investor confidence. The reverse split, while often a short-term measure, is a strategic step to preserve the company’s market position as it advances its drug delivery technology.
