Lexaria Bioscience Corp. (Nasdaq: LEXX) announced it will implement a 1-for-15 reverse stock split of its common stock, effective August 3, 2026, at 12:01 a.m. EST. The move aims to boost the per-share market price to meet Nasdaq's minimum $1.00 bid price requirement under Listing Rule 5550(a)(2). The company hopes this will stabilize its stock amid challenging market conditions and support key business initiatives.
CEO Richard Christopher emphasized the urgency, 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 partners, advancing discussions, and broadening investor appeal, adding that "recent equity market weakness is at odds with the great potential of our technology."
The reverse split will reduce Lexaria's outstanding shares from 24,787,446 to approximately 1,652,518, with fractional shares rounded up. Authorized shares will decrease 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 proportionately, with exercise prices modified accordingly. The company arrived at the 1-for-15 ratio after reviewing 24 reverse splits by Nasdaq-listed biotech firms in early 2026, which averaged 1-for-18.
Lexaria intends to request a Nasdaq hearing to appeal any potential delisting notification, expecting to meet the minimum bid price requirement by mid-August before the hearing. The stock will continue trading under the symbol LEXX but will receive a new CUSIP number.
Shareholders holding physical certificates must contact Computershare Trust Company of Canada for instructions. The company operates a licensed research laboratory and holds a robust intellectual property portfolio with 66 patents granted and additional patents pending worldwide. For more information, visit www.lexariabioscience.com.
Forward-looking statements in this release involve risks and uncertainties, including regulatory approvals, research outcomes, and market conditions. The company disclaims any obligation to update these statements except as required by law.
