Company: LNAI
Filing Date: 2025-10-15
Form Type: DEF 14A
Source: 0001731122-25-001378
Chunk: 33

Company: Lunai Bioworks Inc.
Filing Date: 2025-10-15
Form: DEF 14A
Chunk 33
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 Exchange Agreement, the Investors agreed to exchange an aggregate
of $9.7 million in outstanding secured promissory notes (the “Secured Notes”) for $16.1 million in new convertible promissory
notes (the “Convertible Notes”), representing a 65% premium to the principal and interest amount of the Secured Notes. The
Convertible Notes mature on July 31, 2025, and do not bear any interest. The exchange was completed to restructure the Company’s
debt obligations and provide additional flexibility to support strategic initiatives.

Immediately following the issuance
of the Convertible Noes on July 7, 2025, the Investors elected to convert the entire $16.1 million principal amount into an aggregate
of 5.36 million shares of common stock (the “Conversion Shares”), based on the stated $3.00 per share conversion price. The
$3.00 (on a post reverse split basis) per share conversion price of the Convertible Notes represented a premium to the closing price of
the Company’s common stock on July 7, 2025, the date of execution and conversion. As a result, the issuance of the 5.36 million
shares of common stock upon conversion of the Convertible Notes did not constitute a “below market” issuance under
applicable Nasdaq listing rules and did not trigger stockholder approval requirements under Nasdaq Listing Rule 5635(d). The shares were
issued without any additional consideration from the Investors.

From June 4, 2025 to June 14, 2025,
the Company entered into agreements with Paseco ApS, a Danish entity controlled by a shareholder (“Paseco ApS”) and Laksya
Ventures Inc. to issue Promissory Notes for the principal amount of $1,725,000 to each note holder. The Company received $3,450,000 in
gross proceeds. The notes bear an interest rate of 10% per annum and mature on December 31, 2025. The notes balance at June 30, 2025,
was $3,450,000 with Paseco ApS and Laksya Ventures Inc. each holding $1,725,000.

From October 21, 2024 to January
24, 2025, the Company entered into agreements with Paseco ApS, to issue Promissory Notes for the principal amount of $2,650,000. The Company
received $2,