Company: LNAI
Filing Date: 2025-07-18
Form Type: PRE 14A
Source: 0001731122-25-000995
Chunk: 15

Company: Lunai Bioworks Inc.
Filing Date: 2025-07-18
Form: PRE 14A
Chunk 15
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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 to nominal levels of
trading and may be avoided by retail and institutional investors, resulting in the impaired liquidity of our common stock.

<div align='center'>9</div>

As of July 15, 2025
our common stock closed at $0.28 per share on the Nasdaq Capital Market. The Reverse Split, if effected, would have the immediate effect
of increasing the price of our common stock as reported on the Nasdaq, therefore reducing the risk that our common stock could be delisted
from the Nasdaq.

Our Board strongly believes
that the Reverse Split is necessary to maintain our listing on the Nasdaq. Accordingly, our Board has approved resolutions proposing the
Reverse Split Amendment to effect the Reverse Split and directed that it be submitted to our stockholders for approval at the Special
Meeting.

Management and our Board
have considered the potential harm to us and our stockholders should the Nasdaq delist our common stock from trading. Delisting could
adversely affect the liquidity of our common stock since alternatives, such as the OTC Bulletin Board and the pink sheets, are generally
considered to be less efficient markets. An investor likely would find it less convenient to sell, or to obtain accurate quotations in
seeking to buy, our common stock on an over-the-counter market. Many investors likely would not buy or sell our common stock due to difficulty
in accessing over-the-counter markets, policies preventing them from trading in securities not listed on a national exchange, or other
reasons.

Other Effects.
Our Board also believes that the increased market price of our common stock expected as a result of implementing the Reverse Split could
improve the marketability and liquidity of our common stock and will encourage greater investor interest and trading in our common stock.
The Reverse Split, if effected, could allow a broader range of institutions to invest in our common stock (namely, funds that are prohibited
from buying stock whose price is below a certain threshold), potentially increasing the trading volume and liquidity of our common stock.
The Reverse Split could help increase analyst and broker’s interest in our common stock, as their policies can discourage them from
following or recommending companies with low stock prices. Because of the trading volatility often associated with low-priced stocks,
many brokerage houses