Lexaria Bioscience Corp. (Nasdaq: LEXX) announced that it will effect a reverse stock split of its common stock at a 1-for-15 ratio, effective as of 12:01 am EST on August 3, 2026. The move is designed to increase the per-share market price to regain compliance with the Nasdaq Capital Market's minimum $1.00 bid price requirement under Listing Rule 5550(a)(2).
The reverse split will reduce the company'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. The number of authorized shares will also be consolidated from 220,000,000 to 14,666,667, while the par value remains unchanged. All shareholders will retain the same percentage ownership in the company post-split.
CEO Richard Christopher emphasized the urgency of the action, stating, '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.' He noted that Nasdaq compliance impacts Lexaria's ability to attract business development partners, advance discussions, and broaden 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,' Christopher added.
The company arrived at the 1-for-15 ratio after examining 24 reverse stock splits by Nasdaq-listed biotech firms from January to June 2026, which had an average ratio of 1-for-18. Lexaria plans to request a Nasdaq hearing to appeal any potential delisting notification, but expects to meet the minimum bid price requirement by mid-August before such a hearing occurs.
Following the reverse split, the shares will continue trading on Nasdaq under the symbol LEXX with a new CUSIP number 52886N604. Shareholders holding physical certificates will need to contact Computershare Trust Company of Canada for adjustment procedures.
The reverse split is a defensive measure to stabilize the stock amid critical business developments. Lexaria's patented DehydraTECH drug delivery platform has shown promise in improving bio-absorption and reducing side-effects for oral drugs, and the company holds 66 patents globally. Maintaining Nasdaq listing is crucial for the company's credibility and ability to pursue partnerships and funding opportunities.
This corporate action underscores the challenges small-cap biotech firms face in volatile markets, where share prices can fall below exchange minimums despite strong underlying technology. For investors, the reverse split does not change the company's fundamentals but may affect liquidity and perception. The successful execution and subsequent compliance could restore confidence and support Lexaria's strategic initiatives.
