Lunai Bioworks Completes Merger and Issues Preferred Stock

Lunai Bioworks ( (LNAI) ) has shared an update.

On May 1, 2026, Lunai Bioworks completed a triangular merger in which Neurobridge IP Holdings merged into Lunai Bioworks IP, making the latter a wholly owned subsidiary and transferring a multi-jurisdictional patent portfolio as the sole acquired asset. In exchange, Lunai issued $20 million in Series B Convertible Preferred Stock to Oncotelic and Pelerin, a non-cash deal structured as a private placement that could convert into up to 13,333,333 common shares.

The transaction was undertaken after Nasdaq notified Lunai in February 2026 of a potential delisting for failing to meet the $2.5 million stockholders’ equity requirement. By recording the preferred stock on its balance sheet, the company expects to regain compliance with the equity rule, though final determination rests with a Nasdaq panel and there is no assurance of a favorable outcome.

Lunai still must address Nasdaq’s $1.00 minimum bid price rule, for which it has scheduled a May 8, 2026 special shareholder meeting to vote on proposals, including a reverse stock split. The merger and preferred issuance thus primarily shore up equity while the reverse split proposal remains central to resolving the company’s listing risk tied to its low trading price.

More about Lunai Bioworks

Lunai Bioworks, Inc. operates in the biotechnology and intellectual property space, focusing on acquiring and managing patent portfolios rather than running traditional operating businesses. The company’s recent activities center on consolidating multi-jurisdictional IP assets and using structured equity instruments to bolster its balance sheet and maintain its Nasdaq listing.

Average Trading Volume: 19,394,903

Technical Sentiment Signal: Strong Sell

Current Market Cap: $11.97M

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