Company: LNAI
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001731122-25-001316
Chunk: 882

Company: Lunai Bioworks Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 882
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4, the shareholders of the Company
approved the issuance of the shares of Common Stock pursuant to the Purchase Agreement. On February 13, 2024 (the “Closing Date”),
the Company consummated the acquisition of GEDi Cube and the other transactions contemplated by the Stock Purchase Agreement (collectively,
the “Transaction”). As a result of the Transaction, GEDi Cube became a wholly-owned subsidiary of the Company. The Company
believes the acquisition will provide it with access to the nascent field of artificial intelligence and machine learning driven diagnostics,
which was the primary purpose for the acquisition.

Pursuant
to the Stock Purchase Agreement, as of the Closing Date, the Company acquired all the issued and outstanding equity interests of GEDi
Cube owned by the Sellers as of the Closing Date (each, a “GEDi Cube Share” and, collectively, the “GEDi Cube Shares”)
in exchange for which each Seller was entitled to receive (i) as of the Closing Date, such Seller’s pro rata percentage of an aggregate
of 70,834,183 shares of common stock, par value $0.0001 per share, of the Company (“Common Stock”), which represents the 67,224,089
shares of Common Stock issued and outstanding as of the Closing Date (minus (a) 1 million shares of Common Stock previously issued to
a consultant assisting with the Transaction and (b) 1 million shares of Common Stock previously issued to Avram Miller, a director of
the Company, pursuant to his Advisory Agreement, dated October 11, 2023, by and between Mr. Miller and the Company) (the “Closing
Consideration”) plus 5,610,100 shares of Common Stock representing the Seller’s Earnout Shares (defined below) resulting from
the automatic conversion of the Company’s Series A Convertible Preferred and, (ii) following the Closing Date, such Seller’s
pro rata percentage of the shares of Common Stock (the “Earnout Shares” and, together with the Closing Consideration, the
“Exchange Consideration”) to be issued to the Sellers upon the exercise or conversion of any of the Company’s derivative
securities (subject to certain exceptions) that are outstanding at the Closing Date (the “Closing Derivative Securities”).
Each Seller’s pro rata percentage of the Exchange Consideration is equal to the ratio of the aggregate number of GEDi Cube Shares
owned by such Seller divided by the aggregate number of