Lunit, a medical AI enterprise that debuted on the Kosdaq market via a specialized listing for tech firms in July 2022, is poised to embark on a substantial fundraising initiative merely a year later. The company has confirmed plans for a significant capital infusion through a rights offering, signaling its intent to drive forward with strategic advancements.

Lunit's board convened on August 23rd to deliberate and unanimously endorsed a general public offering via a rights offering mechanism, after allocating an impressive total of $151.8 million (201.9 billion won). Under the blueprint, Lunit intends to issue a substantial tranche of 1,850,150 fresh common shares, each valued at $81.77 (108,700 won) per share. Exact issuance rates will be solidified by October 27th, with an intriguing fractional allocation of 0.14999995 shares per existing share.

An additional strategic move entails the immediate introduction of a 1:1 bonus share distribution following the rights offering. Notably, even shareholders acquiring new shares through the rights offering are entitled to seamlessly partake in the bonus share issuance, amplifying their investment. Of particular note, key stakeholders, including Chairman Seung-Wook Baek and CEO Beomseok Suh, are committed to a full 100% allocation ratio in the rights offering.

The infusion of capital, facilitated by this rights offering, is earmarked for diverse strategic initiatives, with a primary focus on bolstering research and development (R&D) efforts to enhance existing products and propel next-gen innovations. Moreover, Lunit aims to widen its global footprint, introduce a corporate venture capital (CVC) arm, and recruit additional overseas talent. Specifically, they intend to allocate $38.2 million (50.7 billion won) for product enhancement and novel product development, $30.1 million (40 billion won) for new business ventures, $68.3 million (90.7 billion won) for strategic investments in external entities, and $15.3 million (20.4 billion won) for international talent acquisition-paving the way for extensive business expansion.

Established in August 2013 as Lunit (formerly known as Cldi), the company emerged as a pioneering medical AI firm with an unwavering commitment to "Conquering Cancer with AI." Harnessing the power of deep learning technology, Lunit's exceptional journey culminated in its entry into the Kosdaq market on July 21st, 2022, through a specialized listing.

At present, Lunit's financial drive is intricately linked to the advancement of its groundbreaking product, 'Lunit Insight'. This innovative AI image analysis suite has not only secured approvals from the U.S. Food and Drug Administration (FDA) but also earned the prestigious CE certification in Europe. Its practical impact is witnessed across 2,000 medical establishments spanning over 40 countries globally.

Simultaneously, Lunit is venturing into the development of 'Lunit Scope', an AI-driven biomarker platform poised for commercialization and worldwide penetration, forged through strategic partnerships with global biotech entities. A Lunit spokesperson elucidated, "The raised funds will drive the acquisition and curation of patient data across varied cohorts, pivotal for the evolution of biomarkers targeting antibody-drug conjugates (ADCs) in cancer therapy."

Lunit's strategic horizons extend to pioneering ventures in extracting Multiomics data and architecting AI-driven medical data platforms. Multiomics entails amalgamating data sets from distinct 'omic' realms, encompassing genome, proteome, transcriptome, epigenome, and microbiome analyses. The company's ambition is underscored by their intent to lay the foundation for novel enterprises through licensing candidate drug molecules. Notably, promising candidates, validated through Lunit Scope, are poised for direct commercialization or strategic partnerships with large pharmaceutical companies.

In addition, Lunit is setting up a corporate venture capital (CVC). The company explained that it intends to establish a corporate CVC for mid- to long-term revenue generation and strategic mergers and acquisitions (M&A). Particularly, the funds raised this time will be used for investments in global medical AI startups, identifying similar startups within the value chain, and more.

Moreover, the infusion of capital will empower overseas personnel expansion and fresh talent recruitment. Lunit's workforce is a mosaic of diverse nationalities. Riding on successful wins in Business-to-Government (B2G) projects targeting global nations, the company is actively sourcing local talent to ensure the seamless execution of these projects. Investments are specifically earmarked for enlisting professionals in regions with substantial national project scope, such as Australia and Saudi Arabia.

A representative from Lunit remarked, “After commercializing our medical AI products, we have witnessed rapid revenue growth and reaffirmed our global competitiveness. Now is the time to expand into the market more swiftly, and through the 100% participation of major shareholders and executives in this rights offering, we will continue to grow as a leading global medical AI company.”