Lexaria Bioscience Corp. (Nasdaq: LEXX) announced that it will effect a 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 of the company’s shares to regain compliance with the Nasdaq Capital Market’s minimum $1.00 bid price per share requirement under Nasdaq Listing Rule 5550(a)(2). The reverse split is also intended to stabilize uncertain stock conditions as the company faces critical business drivers, which management believes are in the best 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. 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.”
The reverse split will be conducted on a 1-for-15 basis, consolidating 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 and issued convertible securities (options and warrants) will also be adjusted proportionally, with exercise prices of outstanding convertible securities adjusted accordingly. In determining the split ratio, the company examined 24 other reverse stock splits conducted by Nasdaq-listed biotech companies from January 1 to June 30, 2026, which had an average reverse split ratio of 1-for-18.
By proactively performing the reverse split near the end of its 180-day compliance period, Lexaria anticipates requesting a Nasdaq hearing to appeal any potential delisting notification and expects to comply with the minimum bid price rule in mid-August before any such hearing takes place. Following the reverse split, the resulting shares will continue to trade on the Nasdaq under the symbol LEXX but with a new CUSIP number 52886N604. The reverse split will not affect the par value of the shares, and all shareholders will retain the same percentage interest in the company after the split.
This move is significant for Lexaria and its stakeholders. Regaining Nasdaq compliance is crucial for the company’s ability to attract new business development partners and advance existing discussions, as well as broaden investor appeal. The reverse split aims to provide a stable stock price foundation, allowing the company to capitalize on upcoming opportunities despite recent equity market weakness that the CEO says is “at odds with the great potential of our technology.” For more information about Lexaria and its DehydraTECH platform, visit www.lexariabioscience.com.
