The AI-driven life sciences company Lunai Bioworks announced on Wednesday a 1-for-8 reverse split of its common stock. The consolidation will become effective at 12:01 a.m. Eastern Time on May 22, 2026. Trading on the Nasdaq will commence at the post-split adjusted price on that date. The stock will continue to trade under the ticker symbol "LNAI" but will be assigned a new CUSIP number.
Split Details: Share Count to Reduce from 36.27 Million to 4.53 Million According to the company's filing with the SEC, the reverse stock split proposal was approved at a special meeting of shareholders held on May 8, 2026. Shareholders authorized the board of directors to select a final ratio within a range of 1-for-3 to 1-for-30, with the board subsequently choosing the 1-for-8 ratio. Upon effectiveness, every eight shares of existing common stock will be automatically combined into one new share. The total number of outstanding shares will be reduced from approximately 36.27 million to about 4.53 million. The par value of the common stock and the total number of authorized shares will remain unchanged. Fractional shares will be rounded up to the nearest whole share, and shareholders holding their shares in electronic book-entry form are not required to take any action.
Purpose: To Meet Nasdaq's Minimum Bid Price Requirement The primary objective of the reverse split is to help the company regain compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1 per share for continued listing on the Nasdaq Capital Market. The company previously executed a 1-for-10 reverse stock split on September 30, 2025. The stock currently trades around $0.25, having declined 91% over the past year and 72% year-to-date.
Concurrent Strategic Moves: $20 Million Acquisition of CNS Delivery Technology In efforts to improve its fundamentals and create new revenue streams, Lunai Bioworks has recently undertaken several strategic initiatives. On May 1, 2026, the company completed a $20 million preferred stock offering to acquire two novel drug delivery technologies designed to cross the blood-brain barrier. The transaction integrates complementary central nervous system delivery methods, including a prodrug system for crossing the blood-brain barrier and a nose-to-brain delivery pathway, aiming to address core challenges in neurological drug development. In March 2026, the company also completed a debt-for-equity swap of approximately $829,000 to strengthen its balance sheet. CEO David Weinstein stated that the company has built three engines capable of generating immediate, scalable revenue, including AI-driven drug discovery for CNS diseases and cancer, as well as an AI-powered biodefense discovery tool.
Nasdaq Compliance Status Pending The company received a delisting notice from Nasdaq in February for failing to meet the $2.5 million stockholders' equity requirement. The $20 million preferred stock offering is intended to help the company meet this requirement, but a final determination is pending a formal decision by a Nasdaq Hearings Panel. Lunai Bioworks is an AI-driven life sciences company that advances drug discovery by combining clinical data, machine learning, and in vivo validation, with a focus on central nervous system disorders and oncology, aiming to shorten development timelines and improve clinical success rates.
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