Spectral AI Announces Receipt of $1 Million of Financing for Spectral IP, Inc., its Intellectual Property Subsidiary Focused on the Broader Artificial Intelligence Ecosystem

DALLAS, March 19, 2024 (GLOBE NEWSWIRE) -- Spectral AI, Inc. (Nasdaq: MDAI) (“Spectral AI” or the “Company”), an artificial intelligence (AI) company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, today announced it has received a $1 million investment from an affiliate of its largest shareholder into its recently formed subsidiary Spectral IP, Inc. (“Spectral IP”). The investment is structured as a note payable with a one-year maturity, an interest rate of 8%, and requiring earlier prepayment if Spectral IP is spun off to the Company's shareholders or sold.

Peter M. Carlson, Chief Executive Officer of Spectral AI, said, "Following our recent announcement that we had identified additional opportunities for Spectral AI to enhance its position and add value for its shareholders by developing or acquiring IP applicable to the broader AI ecosystem, we received a very attractive proposal to provide financing to Spectral IP from our largest outside shareholder, who also happens to be a recognized IP industry-leader. This is an important initiative for the Company and its shareholders to potentially unlock additional value and this investment immediately validates this initiative.” Mr. Carlson continued, "While we recognize the opportunities created by Spectral IP, management is of the view that any capital required for this initiative should be funded separately so that the Company can deploy its capital to pursue our core operations."

Spectral IP will focus on advancing intellectual property (IP) in the broader AI ecosystem through acquisitions, strategic partnerships and collaborations with AI technology providers, healthcare institutions, and research organizations to accelerate innovation and expand market reach.

Wensheng Fan, Spectral AI’s Chief Innovation Strategist, said, “Medical Device companies are not only focusing on innovation to enhance their patent portfolios but are also making strategic investments in AI.   The integration of Artificial Intelligence is increasing in the medical device industry, but still lags other industries in its adoption. We see tremendous benefits to developing and acquiring IP outside our core product offering that will protect the developing AI healthcare ecosystem.”