LifeSemantics Decides on 20 Billion KRW Paid-in Capital Increase to "Improve Profitability"

추진 for Capital Increase to Improve Mid- to Long-Term Profit and Performance

LifeSemantics announced on the 12th that it held a board meeting on the 11th and decided on a paid-in capital increase worth 20 billion KRW.

Exterior view of the LifeSemantics headquarters.
[Photo by LifeSemantics]

This paid-in capital increase will be conducted through a rights offering to existing shareholders followed by a general public offering of any unsubscribed shares. The first subscription will be offered to existing shareholders holding subscription rights, and any unsubscribed shares after the rights offering will be offered to the general public. If there are still unsubscribed shares after this, the lead underwriter, Korea Investment & Securities, will subscribe to them. The final scale of the capital increase and the issue price will be finalized in mid-November, with the planned issue price set at 3,680 KRW per share. The final new share issue price will apply equally to both existing shareholders and the general public.

LifeSemantics plans to use the funds raised from this capital increase to improve mid- to long-term profitability. Specifically, the funds will be allocated to ▲establishing overseas local subsidiaries for the global expansion of the non-face-to-face medical platform 'DoctorCall' and the respiratory rehabilitation digital therapeutic device 'Redpill Smeuton (DTx)' (2 billion KRW) ▲research and development (R&D) funds for medical artificial intelligence (AI) solution development (5 billion KRW) ▲overseas business related to DoctorCall's global expansion ▲domestic and international clinical trials for digital therapeutic devices (9 billion KRW) ▲and the expansion of related specialized personnel.

LifeSemantics is expected to focus more on generating revenue sources going forward. The non-face-to-face medical business plans to finalize a proof of concept (POC) contract with major hospitals in Thailand this year and proceed with the main contract in the first half of next year. Redpill Smeuton will review the establishment of overseas subsidiaries for global clinical trials and conduct additional clinical trials to supplement the confirmatory clinical trial results. LifeSemantics submitted an application for approval of a follow-up clinical trial plan to the Ministry of Food and Drug Safety at the end of last month, supplementing the clinical trial plan for Redpill Smeuton.

Lee Gyu-jung, Chief Financial Officer (CFO) of LifeSemantics, said, "LifeSemantics is enhancing its competitiveness as approvals for confirmatory clinical trial plans for medical AI software built through the Southeast Asian market entry of DoctorCall and DoctorAnswer 2.0 business have been received consecutively." He added, "Through this paid-in capital increase, we will focus not only on the digital health business, which is emerging as a promising future industry, but also on expanding overseas new businesses to secure growth engines, aiming to grow into a leading company in the global healthcare industry."

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