LungLife AI Inc (AIM:LLAI) shares surged 321% in early trading on Thursday after the company signed a conditional exclusive licensing and distribution agreement for its LungLB test with US diagnostics firm Circulogene Theranostics.
The deal includes an initial payment of $375,000, with a further $375,000 due on completion.
Circulogene will have the exclusive right to commercialise the test in the US, and LungLife will receive royalty payments, with a guaranteed minimum of $450,000 in the first nine months.
The agreement also includes an option for Circulogene to acquire the test and associated assets for $6.2 million.
If exercised, LungLife said it expects to return a portion of the proceeds to shareholders and pursue a delisting from AIM.
The shares rose 2.89p to 3.79p.