24th Dec 2024 13:52
(Alliance News) - Pineapple Power Corp on Monday said it has entered into non-binding heads of terms to acquire FUSE-AI GmbH, a Hamburg-based artificial intelligence company specializing in clinical software solutions, in a proposed reverse takeover.
The acquisition, if completed, would see Pineapple Power issue new shares to acquire 100% of FUSE-AI, enabling the AI firm to pursue a listing on the London Stock Exchange. Pineapple Power, a listed shell company, would facilitate the listing and raise equity funding to support FUSE-AI’s growth and working capital requirements.
FUSE-AI has gained recognition for its AI-powered diagnostic tool, Prostate.Carcinoma.ai, which significantly reduces MRI image analysis time and error rates for radiologists. Its software is already available in over 42 countries, generating recurring revenue through distributors. The company plans to expand its offerings to other diagnostic assistance areas.
The acquisition would constitute a reverse takeover under UK Listing Rules, requiring regulatory approvals, the publication of a prospectus, and shareholder consent at a general meeting. The current directors of FUSE-AI would form the majority of Pineapple Power's board, and FUSE-AI shareholders would become majority stakeholders in the enlarged company.
Pineapple Power's listing has been suspended since April 2023, and the suspension will remain in place pending further disclosures or the publication of a prospectus. If successful, the acquisition is expected to complete in the second quarter of 2025.
The announcement comes after Pineapple Power terminated its proposed acquisition of Ilios Hydrogen Canada Ltd, citing challenges in securing the required funding and reaching an acceptable valuation.
By Eva Castanedo, Alliance News reporter
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