Lexaria Bioscience Announces Reverse Stock Split to Regain Nasdaq Compliance

Lexaria Bioscience Corp. (Nasdaq: LEXX) has announced a reverse stock split effective August 3, 2026, as a strategic move to regain compliance with Nasdaq's minimum $1.00 bid price per share requirement. The decision comes as the company faces a critical juncture, with CEO Richard Christopher emphasizing the importance of maintaining a Nasdaq listing for attracting business partners and investors.

The reverse split will be conducted on a 1-for-15 basis, consolidating the company's current 24,787,446 shares of common stock into approximately 1,652,518 shares. The authorized shares will also be reduced from 220,000,000 to 14,666,667, but the par value remains unaffected. Shareholders will retain the same percentage ownership post-split. The company noted that its decision was informed by an analysis of 24 other Nasdaq-listed biotech companies that conducted reverse splits in the first half of 2026, with an average ratio of 1-for-18.

According to Christopher, recent market weakness does not reflect the potential of Lexaria's technology, and the reverse split is a proactive step to provide a stable foundation. The company intends to request a Nasdaq hearing to appeal any delisting notification, but expects to meet the minimum bid price requirement by mid-August before any hearing occurs. The reverse split is also aimed at stabilizing uncertain stock conditions amid critical business drivers that management believes are in the best interests of shareholders.

Lexaria's DehydraTECH platform, a patented drug delivery technology, has shown promise in improving bio-absorption and reducing side effects for a variety of drugs. The company holds 66 patents and operates a licensed research laboratory. However, the reverse split highlights the financial challenges faced by many biotech firms in maintaining stock price compliance. For investors, the consolidation reduces the number of shares outstanding, which could lead to a higher per-share price, but does not change the underlying value of their holdings.

The implications of this announcement extend beyond Lexaria itself. The company's ability to remain listed on Nasdaq is crucial for its business development efforts and for advancing its technology. As Lexaria works to attract partners and capitalize on upcoming opportunities, a stable stock price and continued exchange listing are essential. The move also reflects broader trends in the biotech sector, where many companies struggle to meet exchange requirements amid volatile markets.

Following the reverse split, Lexaria's shares will continue trading under the symbol LEXX but with a new CUSIP number 52886N604. Shareholders with physical certificates are advised to contact Computershare Trust Company of Canada for procedures. For more information, visit Lexaria's website.