Lexaria Bioscience Announces Reverse Stock Split to Regain Nasdaq Compliance

Lexaria Bioscience Corp. (Nasdaq: LEXX) announced it will effect a 1-for-15 reverse stock split of its common stock, effective at 12:01 am EST on August 3, 2026. The move is designed to increase the per-share market price to meet Nasdaq's minimum $1.00 bid price requirement under Listing Rule 5550(a)(2), as the company faces a potential delisting.

The reverse split consolidates Lexaria'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 220,000,000 to 14,666,667, though the par value remains unchanged. All outstanding convertible securities, such as options and warrants, will be adjusted accordingly, with their exercise prices modified to reflect the split. The company noted that the 1-for-15 ratio was determined after reviewing 24 reverse stock splits by Nasdaq-listed biotech firms in the first half of 2026, which averaged a 1-for-18 ratio.

CEO Richard Christopher emphasized the urgency of the reverse 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 added that Nasdaq compliance is essential for attracting business partners, advancing discussions, and broadening investor appeal, noting that "recent equity market weakness is at odds with the great potential of our technology." The company intends to request a Nasdaq hearing to appeal any delisting notice and expects to meet the minimum bid price requirement by mid-August before any hearing occurs.

Following the reverse split, Lexaria's shares will continue trading under the symbol LEXX on the Nasdaq Capital Market, with a new CUSIP number 52886N604. Shareholders holding physical certificates must contact Computershare Trust Company of Canada for procedures. The company's DehydraTECH drug delivery platform remains central to its strategy, with 66 granted patents and ongoing research aimed at improving drug absorption and reducing side effects. Lexaria operates a licensed in-house research laboratory and continues to pursue regulatory approvals and partnerships.

The reverse split aims to provide a stable foundation for the company to capitalize on existing and upcoming opportunities, as detailed in the press release available at NewMediaWire. Forward-looking statements in the announcement highlight risks including regulatory approvals, competition, and the outcomes of research initiatives, as outlined in Lexaria's filings with the SEC.