Lunai Bioworks, Inc. Announces 1-for-8 Reverse Stock Split to Regain Nasdaq Compliance

Key Highlights for Investors

• Reverse Stock Split Announced: Lunai Bioworks, Inc. (Nasdaq: LNAI) will implement a 1-for-8 reverse stock split of its issued and outstanding common stock, effective 12:01 a.m. Eastern Time on May 22, 2026. Trading on a split-adjusted basis will begin at the market open the same day.
• New CUSIP Number: Post-split, Lunai’s common stock will trade under a new CUSIP number: 29350E302.
• Shareholder Approval and Board Discretion: The reverse split ratio was authorized at a special meeting of shareholders on May 8, 2026, with a range of 1-for-3 to 1-for-30. The Board of Directors set the final ratio at 1-for-8.
• Compliance Goal: The primary motive is to raise the company’s share price to meet the Nasdaq Capital Market’s minimum bid price requirement of \$1.00 per share (Rule 5550(a)(2)), which is crucial for maintaining its Nasdaq listing.
• Share Reduction: This action will reduce the number of outstanding shares from approximately 36,271,119 to about 4,533,890 shares.
• Fractional Shares: No fractional shares will be issued. Any fractional share resulting from the split will be rounded up to the next whole share.
• Effect on Convertible and Equity Instruments: Proportionate adjustments will be made to all outstanding options, warrants, restricted stock units, and other convertible or exercisable securities, including their exercise or conversion prices and share reserves under equity compensation plans.
• Transfer Agent: Securities Transfer Corporation will serve as the exchange agent. Shareholders holding shares electronically do not need to take any action.
• Recent History: This follows a prior 1-for-10 reverse stock split completed on September 30, 2025, indicating ongoing efforts to maintain compliance with listing standards.

What Shareholders Need to Know

• Trading and Liquidity Impact: The reverse split is expected to increase the market price per share, but there are risks it may also reduce overall liquidity, widen bid-ask spreads, or introduce greater volatility.
• No Change to Par Value or Authorized Shares: The par value of common stock and the number of authorized shares remain unchanged.
• Shareholder Action: Registered holders in book-entry form need not take action. Those holding through a bank or broker will have their positions adjusted automatically.
• Potential Price-Sensitive Factors: If the reverse split fails to boost the share price above the \$1.00 threshold or negatively affects trading dynamics, the company could risk delisting from Nasdaq, which would be highly material for shareholders.
• Ongoing Risks: The company notes that there is no guarantee the split will achieve its intended effects, and it may be subject to market sentiment, regulatory delays, or other unforeseen factors.

About Lunai Bioworks, Inc.

Lunai Bioworks is an AI-driven life sciences company focused on accelerating drug discovery and advancing chemical defense solutions. The company leverages clinical data, machine learning, and in vivo validation to identify novel disease biology and develop precision therapeutics, with a particular focus on central nervous system diseases and oncology. Its mission is to reduce development timelines and improve clinical success rates.

Forward-Looking Statements

This announcement contains forward-looking statements regarding the anticipated effects and timing of the reverse stock split, the company’s ability to regain or maintain Nasdaq compliance, and the impact on its capitalization, trading price, and shareholder value. These statements are subject to risks and uncertainties, including the possibility that the reverse split may not result in a sustained price increase, may reduce liquidity, or may not prevent delisting. Investors are encouraged to review risk factors detailed in the company’s filings with the U.S. Securities and Exchange Commission.

Investor Contact

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions. The author assumes no responsibility for actions taken based on this article.

View Lunai Bioworks Inc. Historical chart here