Lexaria Bioscience Corp. (Nasdaq: LEXX) announced on July 30, 2026, 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 primary objective of the reverse split is to raise the per-share market price above the Nasdaq Capital Market's minimum $1.00 bid price requirement, as stipulated in Nasdaq Listing Rule 5550(a)(2). The company also aims to stabilize uncertain stock conditions in the face of several critical business drivers that management believes are in the best interests of shareholders.
As of the announcement, Lexaria had 24,787,446 shares of common stock issued and outstanding, which will be consolidated into approximately 1,652,518 shares, with fractional shares rounded up to the nearest whole number. The number of authorized shares will be reduced from 220,000,000 to 14,666,667, and the par value of the shares will remain unchanged. Additionally, the company's outstanding convertible securities, including options and warrants, will be adjusted proportionally, with their exercise prices adjusted accordingly. The reverse split will not affect any shareholder's percentage ownership in the company.
Richard Christopher, CEO of Lexaria Bioscience Corp., emphasized the importance of the reverse split for continued Nasdaq listing. "We have determined that it is prudent and extremely important that the Reverse Split is conducted sooner rather than later," Christopher 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."
In determining 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, which had an average ratio of 1-for-18. The company anticipates requesting a Nasdaq hearing to appeal any potential 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 shares will continue to trade under the symbol LEXX but will have a new CUSIP number, 52886N604.
This strategic move is critical for Lexaria as it seeks to maintain its listing on Nasdaq, which is essential for attracting business development partners and broadening investor appeal. The company's patented DehydraTECH drug delivery platform, which improves oral delivery of drugs across the blood-brain barrier, holds significant potential, but recent equity market weakness has pressured its stock price. By increasing the per-share price, Lexaria aims to provide a stable foundation for future growth and capitalize on existing and upcoming opportunities. For more information on Lexaria's technology, visit www.lexariabioscience.com.
Shareholders holding physical share certificates are advised to contact Computershare Trust Company of Canada for procedures related to the reverse split adjustment. The company's forward-looking statements highlight risks and uncertainties, including regulatory approvals, competition, and the potential effects of adverse publicity, which could cause actual results to differ materially from expectations. Lexaria disclaims any obligation to update these statements except as required by law.
