Lexaria Bioscience Corp. (Nasdaq: LEXX), a global innovator in drug delivery platforms, announced 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 and regain compliance with the Nasdaq Capital Market's minimum $1.00 bid price per share requirement under Listing Rule 5550(a)(2).
The reverse split consolidates the company's current 24,787,446 issued shares into approximately 1,652,518 shares, with fractional shares rounded up to the nearest whole number. The number of authorized shares will also be reduced from 220 million to about 14.67 million, and outstanding convertible securities will be adjusted accordingly. The company's stock will continue trading under the symbol LEXX but will receive a new CUSIP number.
CEO Richard Christopher emphasized the urgency of the split, 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 is vital for attracting business development partners, advancing discussions, and broadening investor appeal.
The decision comes as Lexaria nears the end of its 180-day compliance period. By proactively executing the split, the company anticipates requesting a Nasdaq hearing to appeal any potential delisting notification, with expectations to meet the minimum bid price by mid-August before any hearing occurs.
Lexaria examined 24 reverse stock splits by Nasdaq-listed biotech companies from January to June 2026, which had an average ratio of 1-for-18. The company's chosen 1-for-15 ratio is slightly less aggressive than the average. The reverse split does not change shareholders' percentage ownership in the company.
This corporate action underscores the challenges facing small-cap biotech firms in maintaining listing standards amid market volatility. For Lexaria, which holds a robust intellectual property portfolio with 66 patents granted and additional patents pending worldwide, the reverse split is a strategic move to stabilize its stock and preserve access to capital markets. The company's patented DehydraTECH™ platform aims to improve oral drug delivery, but recent equity market weakness has pressured its share price.
Shareholders holding physical certificates must contact Computershare Trust Company of Canada for instructions on exchanging their certificates. Lexaria's ability to regain compliance will be closely watched by investors and industry observers as a signal of the company's financial health and future prospects.
