Spectral AI Inc (NASDAQ:MDAI) announced plans to spin off its subsidiary, Spectral IP, Inc., through a deal with Sauvegarder Investment Management, Inc. (SIM).
The transaction aims to position Spectral IP as an independent company with a broader focus on intellectual property (IP) monetization across various sectors, including healthcare, artificial intelligence, and semiconductors.
The spinoff will allow Spectral IP to focus on non-core IP assets while Spectral AI maintains its focus on advancing AI-based diagnostic tools in wound care.
Spectral AI’s entire portfolio of 26 patents and 38 pending applications will remain with the parent company, which will retain its medical diagnostics mission. Spectral IP, to be renamed SIM IP Inc., will operate independently, targeting monetization and growth in “hard tech” sectors often overlooked by other investors.
"We believe this spinoff represents an exceptional opportunity to unlock additional value for our shareholders," said Dr Michael DiMaio, chairman of Spectral AI’s Board of Directors.
"With the spinoff transaction, we are creating a distinct pathway for targeted intellectual property investments outside our core focus on medical diagnostics. This strategic move enables Spectral IP to explore and capitalize on significant opportunities beyond medical diagnostics while driving innovation and growth in the broader IP landscape."
Spectral AI said it plans to distribute stock in the newly independent Spectral IP to its shareholders, a transaction expected to conclude within the next 90 days.
Following the split, SIM IP will be headquartered in Miami, Florida, with Spectral AI board member and largest shareholder Erich Spangenberg taking the helm as CEO, alongside CFO David Kutcher. Spangenberg, known for his expertise in global IP investment and monetization, will guide SIM IP’s strategy, which includes licensing, litigation investment, structured financing, and royalty acquisitions across sectors such as healthcare, IoT, and AI.
Spectral AI initially launched Spectral IP in March 2024, with an emphasis on leveraging IP in healthcare and securing an initial $1 million investment. Now, as an independent entity, SIM IP will further pursue IP-based financing solutions for industry-agnostic, tech-focused sectors with high potential for value growth.