Spear Korea to acquire AI medical firm Life Semantics

South Korea's aerospace materials company Spear Korea will acquire artificial intelligence (AI) medical firm Life Semantics Co. 

Life Semantics announced on Wednesday that it held a board meeting on Monday and resolved to conduct a third-party allocation of new shares worth 5.7 billion won ($4.1 million) to Spear Korea.

Life Semantics reported that it has signed a contract to transfer 3,161,850 shares at 3,530 won ($2.55) per share to LuckyW New Technology Investment Union No. 1 and Geo Energy Link. Spear Korea is a major member of LuckyW New Technology Investment Union No. 1.

Starting from September 4, when all transactions are completed, the largest shareholder of Life Semantics will change from the current CEO, Song Seung-jae, to Spear Korea. At that time, Spear Korea will hold a 16.7% stake, while LuckyW New Technology Investment Union No. 1 will take a 9.5% stake and CEO Song a 5% stake.

Spear Korea plans to continue Life Semantics' existing businesses in the digital health and medical AI industries. It aims to integrate data-based digital healthcare technology into the aerospace sector in the future.

Life Semantics announced that it plans to issue convertible bonds worth 20 billion won ($14.5 million) under the leadership of Spear Korea on September 20 to secure working capital and invest in new businesses.

Write to Hyun-Ah Oh at 5hyun@hankyung.com