Company: LNAI
Filing Date: 2025-07-18
Form Type: PRE 14A
Source: 0001731122-25-000995
Chunk: 16

Company: Lunai Bioworks Inc.
Filing Date: 2025-07-18
Form: PRE 14A
Chunk 16
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 and institutional investors have internal policies and practices that either prohibit them from investing in low-priced
stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers.

Our Board does not intend
for this transaction to be the first step in a series of plans or proposals to effect a “going private transaction” within
the meaning of Rule 13e-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

In addition, because the
number of authorized shares of our common stock will not be reduced, the Reverse Split will result in an effective increase in the authorized
number of shares of our common stock. The effect of the relative increase in the amount of authorized and unissued shares of our common
stock would allow us to issue additional shares of common stock in connection with future financings, employee and director benefit programs
and other desirable corporate activities, without requiring our stockholders to approve an increase in the authorized number of shares
of common stock each time such an action is contemplated.

Risks of the Reverse Split

We cannot assure you that the Reverse Split will increase the price of our common stock and have the desired effect of maintaining compliance with the Nasdaq.

If the Reverse Split is implemented,
our Board expects that it will increase the market price of our common stock so that we are able to regain and maintain compliance with
the Nasdaq Minimum Bid Price Requirement. However, the effect of the Reverse Split upon the market price of our common stock cannot be
predicted with any certainty, and the history of similar stock splits for companies in like circumstances is varied. It is possible that
(i) the per share price of our common stock after the Reverse Split will not rise in proportion to the reduction in the number of shares
of our common stock outstanding resulting from the Reverse Split, (ii) the market price per post-Reverse Split share may not exceed or
remain in excess of the $1.00 minimum bid price for a sustained period of time, or (iii) the Reverse Split may not result in a per share
price that would attract brokers and investors who do not trade in lower priced stocks. Even if the Reverse Split is implemented, the
market price of our common stock may decrease due to factors unrelated to the Reverse Split. In any case, the market price of our common
stock will be based on other factors which may be unrelated to the number of shares outstanding, including our future performance. If
the Reverse Split is consummated and the trading price of our