Lexaria Bioscience Corp. (Nasdaq: LEXX) announced Wednesday that it will effect a 1-for-15 reverse stock split of its common stock, effective at 12:01 a.m. EST on August 3, 2026. The move is designed to increase the per-share market price of the company’s stock and regain compliance with Nasdaq’s minimum $1.00 bid price per share requirement under Listing Rule 5550(a)(2).
The reverse split comes as the company approaches the end of its 180-day compliance period. Lexaria intends to proactively request a Nasdaq hearing to appeal any potential delisting notification, but expects to meet the minimum bid price requirement by mid-August. “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.”
Nasdaq compliance is essential for Lexaria’s ability to attract business development partners, advance existing 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 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, 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, while the par value remains unchanged. All outstanding convertible securities, including options and warrants, will be adjusted accordingly, with exercise prices modified to reflect the split ratio.
Lexaria examined 24 reverse stock splits conducted by Nasdaq-listed biotech companies between January 1 and June 30, 2026, finding an average ratio of 1-for-18. The company’s chosen 1-for-15 ratio is slightly lower than the average, indicating an effort to minimize dilution while still achieving compliance.
Following the reverse split, shares will continue trading on Nasdaq under the ticker symbol LEXX but will be assigned a new CUSIP number: 52886N604. Shareholders holding physical certificates will need to contact Computershare Trust Company of Canada for instructions on exchanging their certificates.
The reverse split is part of Lexaria’s broader strategy to stabilize its stock amid critical business drivers. The company’s DehydraTECH™ platform, a patented drug delivery technology, has shown promise in improving bio-absorption and reducing side effects for a range of drugs. With 66 granted patents and additional pending applications, Lexaria operates a licensed research laboratory and continues to pursue opportunities in drug delivery innovation.
While the reverse split does not change the proportional ownership of existing shareholders, it is a common mechanism for companies facing delisting risks. The success of this move will depend on market conditions and the company’s ability to maintain a sustained share price above $1.00 in the weeks following the split.
