Lunit Issues Update on Acquisition of Volpara with Initial Approval Secured from New Zealand High Court

March 13, 2024 — Lunit, a South Korea-based provider of AI-powered solutions for cancer diagnostics and therapeutics, has announced a significant update on its acquisition of Wellington, New Zealand-based Volpara Health Technologies Ltd., which provides AI-enabled software for personalized screening and early detection of breast cancer. An initial order from the High Court of New Zealand has been granted, and all necessary consents under New Zealand's Overseas Investment Act and Overseas Investment Regulations have been secured to facilitate the implementation of the Scheme. The initial order signals approval and mandates the upcoming shareholder meeting as the next step. Additional details released by Lunit in a written statement shared today follow.

The Scheme, which involves Lunit acquiring all of Volpara's shares at a price of AUD 1.15 (USD 0.76) per share, is now set to progress to a shareholder meeting. Volpara shareholders are invited to attend the Scheme meeting scheduled for April 12, 2024. During this meeting, shareholders will cast their votes on the proposed acquisition.

Should Volpara shareholders endorse the Scheme, Lunit will proceed to acquire the entire shareholding at the agreed price. This acquisition encompasses a total of 254 million shares, amounting to a substantial deal valued at about AUD 292 million (USD 193 million). The takeover is expected to be finalized by May 2024, marking a pivotal moment in Lunit's global expansion and commitment to conquer cancer through AI.

"We're pleased to announce the High Court's approval, a significant step in our remarkable journey. As we approach the final stage where Volpara's shareholders will cast their votes, I would also like to share that our funding for this acquisition is progressing seamlessly, ensuring everything is on track," said Brandon Suh, CEO of Lunit. Suh added, "We are confident that the synergies between Lunit and Volpara will create a powerful force in advancing AI-driven solutions for the benefit of cancer care professionals and patients worldwide."

The acquisition is poised to position Lunit as a leading force in the American market, leveraging Volpara's mammography solutions operational in over 2,000 U.S. medical sites. Additionally, Volpara's repository of over 100 million high-quality mammography images significantly contributes to enhancing Lunit's AI-powered solutions and laying the foundation for the development of autonomous AI models in the future.

In its written statement, Lunit noted that after receiving FDA clearance and the CE Mark, its flagship Lunit INSIGHT suite is clinically used in approximately 3,000+ hospitals and medical institutions across 40+ countries. Lunit is headquartered in Seoul, South Korea, with offices and representatives worldwide.

Volpara Health Technologies offers AI-powered image analysis enabling radiologists to quantify breast tissue with precision and helps technologists produce mammograms with optimal image quality. The company further notes that, in an industry facing increasing staff shortages, its software helps streamline operations and provides key performance insights that support continuous quality improvement.

A Certified B Corporation, Volpara maintains the most rigorous security certifications and holds over 100 patents and numerous regulatory registrations, including FDA clearance and CE marking. Volpara is based in Wellington, New Zealand, with an office in Seattle, WA.

More information: www.lunit.io, www.volparahealth.com

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Lunit to Acquire Volpara: Scheme Implementation Agreement Signed