Company: LNAI
Filing Date: 2025-07-30
Form Type: DEF 14A
Source: 0001731122-25-001053
Chunk: 14

Company: Lunai Bioworks Inc.
Filing Date: 2025-07-30
Form: DEF 14A
Chunk 14
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 would become effective
upon the time specified in the Reverse Split Amendment as filed with the Secretary of State of the State of Delaware. Our Board reserves
the right to elect to abandon the Reverse Split if it determines, in its sole discretion, that the Reverse Split is no longer in the best
interests of us and our stockholders.

Purpose and Rationale for the Reverse Split

Avoid Delisting from the Nasdaq. On April 14, 2025, we received a letter from the Listing Qualifications Department (the “Staff”)
of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that, based upon the closing bid price of our common stock for the prior
30 consecutive business days, we were not in compliance with the requirement to maintain a minimum bid price of $1.00 per share for continued
listing on the Nasdaq, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). We were provided
a compliance period of 180 calendar days from the date of the Minimum Bid Price Requirement notice, or until October 13, 2025, to
regain compliance with the Minimum Bid Price Requirement, pursuant to Nasdaq Listing Rule 5810(c)(3)(A). On July 7, 2025, we received
a letter from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) indicating
that Company has not yet held an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year end.
As a result, the Company has fallen out of compliance with the Listing Rules (the “Rules”) for continued listing. The Company
now has 45 calendar days to submit a plan to regain compliance and, if accepted, NASDAQ can grant an exception of up to 180 calendar days
from the fiscal year end, or until December 29, 2025, to regain compliance.

Failure to approve the Reverse
Split may potentially have serious, adverse effects on us and our stockholders. Our common stock could be delisted from the Nasdaq because
shares of our common stock may continue to trade below the requisite $1.00 per share price needed to maintain our listing in accordance
with the Minimum Bid Price Requirement. Our shares may then trade on the OTC Bulletin Board or other small trading markets, such as the
pink sheets. In that event, our common stock could trade thinly as a microcap or penny stock, adversely decrease