3rd Feb 2025 12:31
(Alliance News) - LungLife AI Inc shares collapsed on Monday as it said it would seek shareholder approval to leave the AIM market and anticipates winding-up the company as it is unlikely to receive a strategic partnership offer or funding in the near term.
Shares in LungLife were down 79% to 2.15 pence in London on Monday afternoon.
The California-based developer of clinical diagnostic solutions for lung cancer said it has been engaged with discussions with several potential strategic partners, which narrowed to one in January.
The company said draft documentation was exchanged, with an upfront fee and ongoing royalty payments anticipated.
LungLife said it continues to perform due diligence but believes it is unlikely to receive a binding proposal "in the near term, if at all" from the potential partner.
The cash balance of the company was USD1.3 million at the end of the calendar year, which the board expects to last into the second quarter of 2025.
It said it does not believe further fundraising is viable after conducting premarketing work at the end of 2024.
LungLife said the board believes that the most appropriate course of action is to seek approval to cancel the admission of its shares on the AIM market.
The firm said a circular to convene a general meeting to approve the cancellation will be published in due course.
The company said it will continue to consider funding options but anticipates the orderly winding up of the company if none are found.
Chair Roy Davis 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."
By Michael Hennessey, Alliance News reporter
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