Lunai Bioworks Inc. (RENB) Shares Plunge 24.62% on Reverse Split and Regulatory Pressures

Lunai Bioworks Inc. (RENB) has plunged to a record low, with its share price dropping 7.14% intraday and declining 24.62% over two consecutive sessions. The recent selloff reflects mounting investor concerns over the company’s capital structure adjustments and regulatory compliance challenges.

The most immediate catalyst for the stock’s decline is the firm’s announced 10:1 reverse stock split, effective September 30, 2025. This move, mandated to meet Nasdaq’s minimum bid price requirements, will reduce outstanding shares from 231.8 million to 23.2 million, with the ticker symbol shifting to “LNAI.” While the adjustment aims to prevent delisting, it has triggered liquidity concerns and eroded investor confidence, compounded by the company’s acknowledgment that there is no guarantee the revised pricing will sustain compliance with exchange thresholds.

Strategic developments in recent weeks have offered limited relief to the stock. Lunai secured an NIH STTR grant on September 15 to advance AI-driven Alcohol Use Disorder therapeutics and restructured its European operations on September 18 to bolster international strategy. Additionally, the company retained American Defense International to strengthen biodefense initiatives. These moves, while signaling long-term potential, have not offset the near-term fallout from the reverse split or the administrative complexities it introduces, such as rounding fractional shares and adjustments to equity awards.

The company’s broader market performance underscores persistent skepticism. With a -84.44% year-to-date return and -72.84% one-year return compared to the S&P 500’s gains, Lunai’s valuation struggles reflect challenges in translating its AI and biomedical innovations into tangible investor returns. Despite advancements in dendritic cell therapy and partnerships with institutions like Brigham and Women’s Hospital, these achievements have not directly influenced recent price action, which remains dominated by regulatory and liquidity pressures.