Sacramento, California, October 22nd / PRNewswire / -- Lunai Bioworks Inc. (Nasdaq ticker: LNAI, hereinafter referred to as the "Company") announced that on October 21, 2026, it received a letter from the Listing Qualifications Department of Nasdaq Stock Market LLC stating that the Company no longer met the requirements of Nasdaq Listing Rule 5550(b)(1). This rule requires that shareholders' equity be at least $2.5 million. In the Company's 10-K annual report for the fiscal year ending June 30, 2026, it was disclosed that there was a shortfall in shareholders' equity of ($9,024,946), and the Company did not meet the alternative criteria of market value of listed securities or net profit. Since the Company is subject to the monitoring of the mandatory hearing committee under Nasdaq Listing Rule 5815(d)(4)(B), Nasdaq staff has decided to delist the Company's securities. Trading of the Company's common shares on Nasdaq is expected to be suspended at the opening of trading on October 30, 2026.

The company will not apply for a hearing. The company's board of directors did not object to the decision of the staff, but instead approved on October 22, 2026, the voluntary delisting of the company's common shares from NASDAQ in accordance with Rule 12d2-2(c) of the revised Securities Exchange Act of 1934. The board of directors took this action due to the decision of the staff and the company's financial situation, and deemed that the costs of continuing to maintain the listing and reporting to SEC were no longer reasonable.

The company notified NASDAQ of its intention on October 22, 2026. The company plans to file a Form with the U.S. Securities and Exchange Commission (SEC) around November 2, 2026, and expects the delisting to take effect around November 12, 2026. Subsequently, the company intends to file a Form 15 in order to suspend its SEC reporting obligations under eligible circumstances. Unless terminated or suspended according to the SEC rules, the company's SEC reporting obligations will continue to be in effect.

The company stated that it has no intention of arranging for its common shares to be quoted on any over-the-counter trading markets, nor can it guarantee that there will still be any trading markets for its common shares after the suspension of trading on NASDAQ.

Forward-looking Statements

This press release contains forward-looking statements, including projections regarding the anticipated suspension of trading, the estimated times for submitting Form and Form (25 and 15 respectively), as well as the expected delisting and cancellation of registration times. Due to risks and uncertainties such as NASDAQ and SEC procedures, as well as the company's financial condition, actual results may differ significantly from these statements. Except as required by law, the company assumes no obligation to update these statements.