(Health Korea News / Yu Ji-in) SB Biomedics announced on the 13th that it had decided to increase capital by 7 billion won through a third-party allocation method. The shares issued through this paid-in capital increase are 271,320 registered common shares, and the new share issuance price is 25,800 won per share. The third-party allocation targets are SYS Holdings and Dongkook Pharmaceutical, and the payment date is scheduled for September 25.
This capital increase is the company’s first capital increase since its KOSDAQ listing in May of last year. The company said, “It is significant in that it is an issue of common stocks, not convertible bonds or convertible stocks,” and “Through this paid-in capital increase, the company plans to focus more on the clinical trials currently under development.”
The company also expects that it will help strengthen financial soundness. The company was designated as a stock requiring investment attention on the 16th of last month due to derivatives valuation losses caused by stock price increases. The company judged this to be a temporary accounting loss and announced that it would conduct a random audit review as of July through a change in accounting policy to confirm that it does not meet the criteria for a stock requiring investment attention. However, the company judged that it has been confirmed that it does not meet the criteria for a stock requiring investment attention even without conducting a random audit through this third-party allocation paid-in capital increase. As the financial issues have been resolved, the company has considered the resolution of the stock requiring investment attention due to the capital erosion rate as of December of this year as a fait accompli.
A company official claimed, “This capital increase decision has strengthened our financial stability, allowing us to focus more on clinical research,” and “This capital increase was planned to be a scale commensurate with the company’s needs, and was also made on a scale to maximize the protection of shareholders’ rights.”
SBiomedics plans to announce the final results of the phase 1/2a clinical trial of FECS-Ad, a cell therapy for severe limb ischemia, at the end of September, and the interim results of the one-year follow-up observation of three patients administered high-dose TED-A9, a Parkinson’s disease treatment, around October.
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Source: www.hkn24.com
