Microtech Partners with Nanofiber 'N2Cell' to Enter Mask Business

[Asia Economy Reporter Jang Hyowon] Microtech is entering the mask business by partnering with N2Cell, a nanotechnology specialist company. The plan is to leverage synergies with the entertainment business to create a stable cash cow.

According to the electronic disclosure system on the 26th, Microtech decided on a paid-in capital increase of 2.5 billion KRW on the 24th targeting CEO Jung Woncheol of N2Cell.

They also decided to issue convertible bonds totaling 20 billion KRW to VVZ 1st Fund (10 billion KRW), VVZ 2nd Fund (8 billion KRW), K-Clavis New Technology Fund No. 18 (1 billion KRW), and K-Clavis New Technology Fund No. 19 (1 billion KRW).

Microtech plans to promote new businesses based on the mass production technology of nanofibers through electrospinning held by CEO Jung Woncheol and N2Cell. Of the 22.5 billion KRW investment, 15 billion KRW is intended for acquiring securities of other companies.

N2Cell produces functional nanomembranes for clothing, fine dust nano masks, and nano mask packs. The company jointly researched and developed nanofibers with the Department of Textile Science at Shinshu University in Japan, which boasts the world's highest authority in textile research.

The mask brand 'BreathSilver' launched by N2Cell in Japan last year contains an ultra-fine nanofiber filter with a PM 0.1 diameter. The company explained that this product applies the antibacterial composite capsule 'SSNC,' registered with the U.S. Environmental Protection Agency (EPA), which blocks more than 650 types of harmful bacteria. The ‘BreathSilver’ mask is sold at over 500 stores including Tokyu Hands, Don Quijote, and Loft in Japan.

As the mask market has recently grown rapidly, N2Cell was looking for a financially strong partner to build large-scale mass production facilities and expand sales capabilities. In particular, due to the explosive order volume flooding in from overseas, there was a need to accelerate the establishment of mass production facilities.

A Microtech official said, "We plan to actively review new businesses with N2Cell and will also reorganize related business objectives. The mask business can be linked with the entertainment business and marketing, and since there is high demand for Korean masks globally, we judge that the growth potential is high."

Meanwhile, Microtech has been promoting the strengthening of its entertainment business since last year. In November last year, it acquired 100% of the shares of drama production company Ace Factory and completed an absorption merger on February 11 this year. It is producing JTBC's 'If the Weather Is Good' which started airing last month, and tvN's drama 'Secret Forest 2' scheduled to air in August.

This content was produced with the assistance of AI translation services.