LifeSemantics said Tuesday it has decided to increase its capital by 20 billion won ($15 million) at its board of directors meeting.

After shareholder allocation, the capital increase will be conducted as a public offering of forfeited shares. The first subscription will be for existing shareholders with the right to acquire new shares, and the remaining amount will be offered to the public. When the final forfeited shares occur, Korea Investment & Securities, the lead underwriter, will take over.

The final size and issue price will be finalized in mid-November, with a planned issue price of 3,680 won per share. The final issue price will apply to both existing shareholders and the public.

LifeSemantics plans to use the proceeds to improve its profitability in the medium to long term. More specifically, it will use 2 billion won to establish overseas local subsidiaries for the global expansion of Dr. Call, a non-face-to-face medical treatment platform, and Red Pill Sumteon, a respiratory rehabilitation digital treatment device, 5 billion won to research and develop medical AI solution, and 9 billion won for overseas business related to the global expansion of Dr. Call and domestic and international clinical trials of digital treatment devices and expansion of related professional staff.

LifeSemantics is likely to focus more on creating revenue streams in the future.

The non-face-to-face medical treatment business will finalize a POC contract with a major Thai hospital this year and proceed with this contract in the first half of next year to actively secure revenue.

In addition, the company will consider establishing an overseas subsidiary for the global clinical trial of Redpill Sumteun and conduct additional clinical trials to complement the results of the confirmatory clinical trial.

In late August, LifeSemantics applied for approval of a follow-up clinical trial plan to the Ministry of Food and Drug Safety by expanding the number of existing subjects to a level that allows economic evaluation and applying appropriate evaluation variables, such as increased daily activity.

In addition, LifeSemantics operates two subsidiaries, NutraSemantics, a health functional food development company, and Nexus Bridge, a data-based insurance, funeral, and healthcare product sales company.

Since the third quarter of this year, each of the subsidiaries has been launching new products and signing new contracts. LifeSemantics wholly owns each subsidiary and will likely be consolidated, allowing the three companies to expand their actual operating revenues and improve their profitability, according to LifeSemantics.

"LifeSemantics is increasing its competitiveness with the recent entry of Dr. Call into the Southeast Asian market and the approval of a confirmatory clinical trial plan for medical AI software built with Dr. Answer 2.0," CFO Lee Jeong-said. "Through this capital increase, we will grow into a leading company in the global healthcare industry by focusing on the digital health business, which is emerging as an expected industry in the future and expanding new overseas businesses to secure growth engines."

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Life Semantics CEO Song Seung-jae