AI-powered drug discovery and biodefence company Lunai Bioworks Inc (Nasdaq:LNAI) announced on Thursday that it has received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC stating that the company no longer complies with Nasdaq Listing Rule 5550(b)(1), which requires minimum stockholders' equity of USD2,500,000.

Lunai Bioworks reported a stockholders' deficit of USD9,024,946 in its Annual Report on Form 10-K for the fiscal year ended 30 June 2026, and does not meet the alternative market value of listed securities or net income standards. Because the company is subject to a mandatory Hearings Panel Monitor under Nasdaq Listing Rule 5815(d)(4)(B), Nasdaq staff determined to delist the company's securities. Trading in the company's common stock on Nasdaq is expected to be suspended at the opening of business on 30 October 2026.

The company said that it will not request a hearing. Rather than contest the staff determination, Lunai Bioworks' board of directors has approved the voluntary withdrawal of the company's common stock from listing. The board took this action because of the staff determination and the company's financial condition, and concluded that the cost of continued listing and SEC reporting is not justified.

Lunai Bioworks intends to file a Form 25 with the US Securities and Exchange Commission (SEC) on or about 2 November 2026, and expects the delisting to become effective on or about 12 November 2026. The company then intends to file a Form 15 to suspend its SEC reporting obligations, to the extent it is eligible to do so.

Lunai Bioworks does not intend to arrange for quotation of its common stock on any over-the-counter market, and said it cannot assure that any trading market for its common stock will exist after trading on Nasdaq is suspended.