[Public Notice+] Microtech Acquires Stake in Nanotechnology Firm 'Entucell'... Earnings Expectations Rise

[Asia Economy Reporter Jang Hyowon] Microtech announced on the 28th that it will acquire a 16.44% stake in N2Cell, a nanotechnology specialized company. By investing a total of 16 billion KRW through acquiring existing shares worth 6 billion KRW and participating in a new paid-in capital increase of 10 billion KRW, Microtech is entering the nano-related market.

Jung Woncheol, CEO of N2Cell, will also participate in Microtech's third-party allotment paid-in capital increase worth 2.5 billion KRW, scheduled for payment on the 29th.

A Microtech official stated, “With the recent rapid growth of the mask market due to the COVID-19 pandemic, Microtech and N2Cell have become strategic partners to establish large-scale mass production facilities and expand global sales capabilities. We plan to actively develop high value-added markets including the US, Europe, and Japan, manufacturing and selling various nano products utilizing N2Cell’s nanotechnology.”

Furthermore, N2Cell, which has secured top-level technology in ultra-fine processing science and technology requiring precision at the level of one ten-billionth, plans to develop various medical products such as medical thermal gauze and plasma separation membranes. It is explained that numerous requests for materials and overseas roadshows have been received from global healthcare companies.

N2Cell’s electrospinning technology is characterized by excellent stability. Unlike other nanofiber companies, it does not use any organic solvents, making it harmless to the human body. It has obtained safety certification in Japan, known for its strict safety standards, and supplies nanofilter masks throughout Japan.

In collaboration with the Department of Textile Science at Shinshu University in Japan, which boasts the world’s highest authority in textile research, N2Cell has developed nanofibers and secured a leading position in the most demanding market.

A Microtech official said, “Since mask filters, which are currently in short supply worldwide, are rapidly being replaced by nanofilters, we expect nanotechnology to soon benefit from the localization policy of materials, parts, and equipment, and we will accelerate technology development.”

The acquisition of N2Cell is also expected to expand Microtech’s performance. As N2Cell has confirmed contracts approaching 150 billion KRW this year, Microtech’s consolidated sales and operating profit are expected to increase significantly. Additionally, meeting requests from major companies in the US and Europe continue, raising expectations for additional contracts.

A Microtech official said, “Considering that the market capitalization of nanotechnology-related companies currently traded in the market approaches 800 billion KRW and 500 billion KRW respectively, this acquisition of N2Cell is a highly efficient acquisition given N2Cell’s growth potential. We also expect an increase in the corporate value of Microtech, the acquiring entity.”

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