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Lunai Bioworks, Inc. Announces Reverse Stock Split

Lunai Bioworks, Inc., listed on Nasdaq under the ticker symbol LNAI, has recently declared its intention to implement a reverse stock split of its common stock. The decision comes as part of its strategic efforts to meet compliance standards set by the Nasdaq Listing Rules. This pivotal move is scheduled to take effect on May 22, 2026, at 12:01 AM ET.

Details of the Reverse Stock Split

The reverse stock split will follow a ratio of 1-for-8. This means that for every 8 shares currently held, stockholders will now receive 1 share post-split. The total number of shares outstanding is expected to decrease from approximately 36.27 million to about 4.53 million. Importantly, this maneuver is not designed to affect the par value of the shares, which remains at $0.0001 per share.

To ensure a seamless transition, all fractional shares resulting from the split will be rounded up to the nearest whole share. As such, stakeholders are advised that registered stockholders holding shares in book-entry form will receive detailed communication regarding their new holdings.

Background and Rationale

During a special meeting of stockholders held on May 8, 2026, a proposal enabling the company’s Board of Directors to amend its Certificate of Incorporation for implementing a reverse stock split was approved. The Board subsequently set the final ratio at 1-for-8, standing out from the initially suggested range of 1-for-3 to 1-for-30.

The impetus for this stock consolidation is primarily to bolster the market price per share, addressing compliance with Nasdaq Listing Rule 5550(a)(2). This regulation mandates that a minimum bid price of $1.00 per share is necessary for continued listing. Lunai previously executed a reverse stock split at a ratio of 1-for-10 on September 30, 2025, as part of ongoing efforts to enhance its market position.

Future Implications

The impacts of the reverse stock split could be significant. While the company aims to stabilize and potentially increase its stock price, challenges remain. Market conditions, trading volumes, and investor reactions to the stock split will all influence outcomes. Concerns about liquidity and the potential for increased price volatility following the split are also on the radar of analysts and investors alike.

Lunai Bioworks is not just a stock entity; it is a pioneering AI-driven life sciences company that specializes in drug discovery and chemical defense. By integrating clinical data and machine learning, Lunai is focused on addressing crucial health areas, particularly central nervous system diseases and oncology. This focus sets the stage for promising advancements as the company pursues a mission to expedite development and enhance clinical success rates.

The reverse stock split marks a strategic chapter for Lunai Bioworks Inc. As the date approaches, all stakeholders are encouraged to remain abreast of developments to navigate the changing landscape of stock ownership effectively.

Conclusion

This reverse stock split signifies a critical strategy to not only stabilize share price but also to reaffirm Lunai Bioworks' commitment to maintaining Nasdaq's stringent listing requirements. As the life sciences sector continues to evolve, this company is positioned to make a substantial impact in the areas of precision therapeutics and drug discovery.