LungLB, the company’s AI-augmented blood-based test, is expected to launch in 2023

California-based LungLife AI, which develops AI-powered lung cancer detection tools, raised £17 million ($23.4m) on its first day of floating on the London Stock Exchange’s Alternative Investment Market (AIM) on Thursday.

Its first day on the public market saw its value rise to £45 million ($62m), with 25,480,790 common shares valued at around 210p ($2.89), up from their issue price of 176p ($2.42).

The company went public to try and raise funds for commercialization of its products and to support the in-licensing of additional technologies.

"We are delighted with the strong support shown by new institutional investors for our fundraiser and we are very proud to complete our admission to AIM, which is a key milestone in the advancement of our AI-enabled LungLB test for early lung cancer detection,” Paul Pagano, LungLife’s CEO said.

From Thousand Oaks to London via Delaware

Founded in 2008, Lunglife is registered in Delaware but operates out of Thousand Oaks, California.

The company is developing tests that span all stages of lung cancer, from aid in diagnosis for patients with early-stage disease to treatment stratification and monitoring in late-stage lung cancer.

Investec Bank acted as nominated adviser and sole broker for the float.

Lunglife said it will now be looking to complete its validation studies and undertake a subsequent utility study of its AI-augmented blood-based LungLB test for indeterminate lung nodules.

LungLB is expected to launch in 2023, the company said. It's designed to provide medical staff with more information on a patient's case and enable better decision-making following a CT scan.