REG - LungLife AI, INC - Operational Update & Proposed Cancellation

LungLife AIAnnouncement

03/02/2025 07:15

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RNS Number : 6240V  LungLife AI, INC  03 February 2025

 

This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation No 596/2014 which is part of English
Law by virtue of the European (Withdrawal) Act 2018, as amended. On
publication of this announcement via a Regulatory Information Service, this
information is considered to be in the public domain.

 

LungLife AI, Inc.

(the "Company" or "LungLife")

 

Operational and Funding Update

and

Proposed Cancellation from AIM

 

LungLife AI (AIM: LLAI), a developer of clinical diagnostic solutions for lung
cancer, provides the following update.

 

As set out in the Operational Update on 19 November 2024, the Company had been
actively engaged in discussions with several potential strategic partners.
These discussions were aimed at identifying a partner that not only shares the
Company's long-term vision but also offers the resources and expertise to help
unlock the full commercial potential and accelerate the adoption of LungLB®.

 

Discussions had started with multiple parties in 2024, however, in January
2025 one particular party became the key focus of these engagements. Initial
conversations regarding the entry into a letter of intent resulted in draft
documentation being exchanged. The terms presented in the letter of intent
anticipated an upfront fee, along with ongoing royalty payments and, longer
term, an option to buy the relevant IP to operate the LungLB test.  This
party continues to perform diligence, but it is the Board's opinion that they
are unlikely to submit a binding proposal in the near term, if at all.

 

As of 31 December 2024, the Company had a cash balance of $1.31m. The Company
has continued to maintain a disciplined approach to costs and maintains a cash
runway which is expected to extend into Q2 2025. The Company undertook
premarketing work before Christmas and in recent weeks and based on the
feedback received, the Board does not consider a further fundraising on the
public markets is viable.

 

The Company proposes to seek to reengage with parties regarding the securing
of a strategic partner for LungLife. However, in light of the cash runway
available to the Company and the lack of interest in a fundraising, it has now
become clear to the Board that the most appropriate course of action is for
the Board to seek approval from the shareholders of the Company to cancel the
admission of the Company's ordinary shares to trading on AIM in accordance
with Rule 41 of the AIM Rules for Companies.

 

A circular convening a general meeting of the Company to approve the proposed
cancellation and providing further detail on the next steps will be published
in due course and a further announcement will be made at that time.

 

The Board proposes to continue to consider potential sources of funding
options for the Company but, should none be identified, nor any strategic
agreement reached, the Board anticipates the orderly winding up of the
business in due course.

 

Roy Davis, Chairman of LungLife AI, said

"On behalf of the Board, I would like to express our thanks to Paul and the
team as well as our shareholders for their support since IPO and our
subsequent funding in March of last year. We successfully took the technology
from clinical validation to our first commercial sales. I am proud of the
LungLB test that we have created, and we will continue efforts to realize its
value for patients within the constraints of our cash position and
obligations."

 

 

 

For further information please contact:

 

 LungLife AI, Inc.                                   www.lunglifeai.com (https://www.lunglifeai.com/)
 Paul Pagano, CEO                                    via investors@lunglifeai.com
 David Anderson, CFO

 Investec Bank plc (Nominated Adviser & Broker)      Tel: +44 (0)20 7597 5970
 Virginia Bull / Lydia Zychowska

 Goodbody (Joint Broker)                             Tel: +44 (0) 20 3841 6202
 Tom Nicholson / Cameron Duncan

 

About LungLife

LungLife AI is a developer of clinical diagnostic solutions designed to make a
significant impact in the early detection of lung cancer, the deadliest cancer
globally. Using a minimally invasive blood draw, the Company's LungLB® test
is designed to deliver additional information to clinicians who are evaluating
indeterminate lung nodules. For more information visit www.lunglifeai.com
(http://www.lunglifeai.com)

 

Our Purpose is to be a driving force in the early detection to lung cancer.
And our Vision is to invert the 20:80 ratio such that in years to come at
least 80% of lung cancer is detected early.

 

 

 

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