Lunit Decides on 200 Billion KRW Capital Increase... "Strengthening R&D and New Product Development"

Decision Made to Implement One-to-One Free Capital Increase as Well

Medical artificial intelligence (AI) company Lunit is raising funds for strengthening research and development (R&D) through a paid-in capital increase worth 200 billion KRW.

Lunit Signage. [Photo by Lunit]

Lunit announced on the 23rd that it has decided on a paid-in capital increase amounting to 201.872 billion KRW. The method of the capital increase is a rights offering to existing shareholders followed by a general public offering of any unsubscribed shares.

Accordingly, Lunit plans to issue 1,857,150 new shares at 108,700 KRW per share. The price of the new shares will be subject to change depending on the first issuance price and the final issuance price. Existing shareholders will be allocated 0.14999995 shares per one share held.

Additionally, immediately after the paid-in capital increase, a one-to-one bonus share issuance will be conducted. The new shares issued through the paid-in capital increase will automatically participate in the bonus share issuance, granting rights to receive new shares from the bonus issuance.

Lunit emphasized, "Major executives including Chairman of the Board Baek Seung-wook, the largest shareholder, and CEO Seo Beom-seok will participate 100% in the allocation ratio of the paid-in capital increase."

Lunit plans to use the secured funds for ▲product advancement through R&D enhancement ▲development of next-generation new products ▲expansion of global market entry and establishment of a corporate venture capital (CVC) ▲new hiring of overseas employees. The detailed fund utilization plan includes ▲507 billion KRW for product advancement and new product development ▲40 billion KRW for new business entry ▲90.7 billion KRW for investment in other corporations ▲20.4 billion KRW for overseas employee recruitment.

In the new product development area of Lunit Insight, the funds will be used for purchasing and managing datasets for new modalities and cancer type expansion, as well as for clinical research. For the development of new Lunit Scope products, funds will be invested in purchasing and managing ▲patient group data ▲biomarker development data for antibody-drug conjugate (ADC) anticancer agents.

New businesses related to multi-omics data extraction and AI-based medical data development and analysis platforms will also be pursued. For this, if positive results are derived using Lunit Scope among new drug development candidate substances, the company will license in the technology. Subsequently, it plans to either develop and commercialize directly or license out to major pharmaceutical companies, concretizing the business model.

A corporate venture capital (CVC) for mid- to long-term revenue generation and strategic mergers and acquisitions (M&A) will also be established. The funds raised through the paid-in capital increase will be used for investing in global medical AI startups and discovering similar startups. Given that 20% of Lunit’s total workforce consists of foreigners, funds will also be allocated for new overseas employee recruitment.

A Lunit official stated, "After commercializing medical AI products, Lunit’s sales have rapidly grown, reaffirming the company’s global competitiveness. Now is the time to expand the market more swiftly, and through this capital increase with 100% participation from the largest shareholder and CEO, we will continue to grow as a leading global medical AI company."

This content was produced with the assistance of AI translation services.