Lunai Bioworks Inc. (NASDAQ:LNAI) experienced a 12.6% fall in its share price on Wednesday after disclosing plans for a 1-for-8 reverse stock split that will take effect on May 22, 2026.
The split will consolidate every eight outstanding common shares into a single share, decreasing the company total issued and outstanding shares from about 36.3 million to roughly 4.5 million. The common stock will continue to trade under the ticker symbol "LNAI" on The Nasdaq Capital Market, but the company will use a new CUSIP number - 29350E302 - following the split.
According to the company, the primary purpose of the reverse split is to raise the per-share trading price to regain compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share for continued listing. Lunai previously carried out a 1-for-10 reverse split on September 30, 2025.
The Board of Directors adopted the 1-for-8 ratio after stockholders granted authority for a reverse split at any ratio between 1-for-3 and 1-for-30 during a special meeting held on May 8, 2026. The company noted that the reverse split will not alter the par value of the common stock nor will it change the number of authorized shares.
No fractional shares will be issued as part of the exchange. Any fractional interest that would otherwise result from the split will be rounded up to the next whole share. The company also confirmed that proportionate adjustments will be made to outstanding options, warrants, restricted stock units and other convertible securities to reflect the new share structure.
Securities Transfer Corporation has been designated to act as the exchange agent for the reverse split. Holders whose shares are maintained electronically in book-entry form will not need to take any action in connection with the split.
Market reaction and context
The immediate market response to the announcement was a share-price decline of 12.6% during Wednesday trading. The stated objective of the split is compliance with Nasdaq Listing Rule 5550(a)(2) requiring a minimum $1.00 bid price, a target the company sought to address previously with a 1-for-10 split completed in late September 2025.