Hong Kong-based investment firm Well Alike, one of Lunit's early investors, has sold some of its shares in the market.

The medical AI company said the sale was in line with Well Alike's investment strategy, having nothing to do with the company’s internal circumstances.

On Tuesday, Well Alike sold 588,930 Lunit shares in the open market, the Korean company said in a public filing. According to it, Well Alike sold Lunit shares in the market on seven occasions in June and July. The average selling price ranged from 157,727 won to 182,770 won ($121.3-$140.5) per share.

Well Alike is one of Lunit's earliest investors, having invested in four rounds of funding, starting with Series B in June 2018, followed by Series B+ in September 2019, Series C in December 2019, and Pre-IPO in November 2021.

The stock selling reduced Well Alike's holding in Lunit from 783,991 shares to 185,061 shares, with its equity holding plunging from 6.45 percent to 1.5 percent.

“These sell-offs were in accordance with Well Alike's investment strategy and has nothing to do with Lunit's internal circumstances, such as changes in corporate value and future strategy," Lunit said. “Well Alike has also sent a separate letter to us, stating that this sale was necessary for investment purposes."

Lunit also emphasized that Well Alike has not sold a single share of its Series B, B+, and C shares since its initial public offering three months ago, although its holding periods for these shares have all expired.

"The sell-off is limited to Series B shares, which have been invested for five years, and Series B+ shares, which are approaching four years," Lunit said. "Well Alike will retain the Series C shares whose holding period has already expired and the pre-IPO shares that are still in the lock-up period even after their lock-up periods will have been expired."