iQflow Raises 35 Billion KRW in 4 Months Since Public Subscription

Private Placement of CB to Institutional Investors
Conversion Price Set at 72,000 KRW, Four Times Higher Than the Public Offering Price of 19,000 KRW
EO Patch Recognized for Scalability, Secures Funding... New Business Momentum Expected

[Asia Economy Reporter Hyungsoo Park] IoFlow, which was listed on the KOSDAQ market last September, has secured additional research and development (R&D) funds by issuing convertible bonds (CB) through a private placement. Due to growth expectations following the commercialization of a disposable wearable insulin pump, the conversion price of the CB was set at a price four times higher than the initial public offering (IPO) price, reflecting the sharp rise in the stock price after listing.

According to the Financial Supervisory Service's electronic disclosure system on the 20th, IoFlow is issuing CBs worth 35 billion KRW to New Vision Orbit New Technology Business Investment Association No. 1, Hanyang Securities, and others. The coupon rate is 0%, and the conversion price is 72,624 KRW. If the stock price falls, the conversion price can be lowered to 58,100 KRW. IoFlow can exercise a call option for 35% of the CB issued this time, amounting to 12.25 billion KRW.

IoFlow plans to use the raised funds for clinical trials and R&D of wearable artificial pancreas, as well as for R&D and license acquisition related to its subsidiary in the United States focusing on wearable artificial kidneys.

Founded in 2011, IoFlow is developing wearable drug delivery solutions based on electro-osmotic pump technology. IoFlow succeeded in commercializing the world's second disposable wearable insulin infusion solution (Eopatch).

IoFlow plans to launch Eopatch domestically around March this year. It has signed a five-year exclusive domestic sales contract worth 36 billion KRW with Huons Global. In the second quarter of this year, it plans to obtain European CE certification and aims to receive U.S. Food and Drug Administration (FDA) approval by the second half of next year. Sojung Lee, a researcher at SK Securities, explained, "Eopatch is more convenient than traditional products such as insulin pens and syringes. Wearable insulin pumps are highly portable and attached in a patch form without infusion lines, leading to increased demand."

Previously, IoFlow was listed on the KOSDAQ market on September 14 last year. At that time, it issued 1.4 million new shares at a public offering price of 19,000 KRW. Through the prospectus, it announced plans to raise 26.6 billion KRW to be used for facility funds, R&D funds, and operating funds. The 11.1 billion KRW allocated for R&D was planned to be used by 2024, and the 15.4 billion KRW for facility and operating funds was scheduled for use by next year.

IoFlow attracted investment again just four months after listing. There is growing demand for platform technology that converts intravenous injection formulations into subcutaneous injections that patients can self-administer in daily life. This is why the scalability of IoFlow’s wearable drug infusion device dedicated to subcutaneous injection is gaining attention. IoFlow’s products automatically save drug infusion history to the cloud for analysis and can be shared with caregivers and medical staff.

An IoFlow representative said, "We expect this fundraising to accelerate the promotion of new businesses." The funds were raised to create various application products based on Eopatch to secure market leadership. IoFlow plans to invest in expanding its product line by applying various types of drugs instead of insulin to its existing wearable drug infusion solutions.

IoFlow is also developing a detachable wearable artificial pancreas that automatically adjusts insulin infusion amounts according to blood glucose changes by linking with blood glucose sensors. This is an integrated wearable artificial pancreas that combines sensors and pumps into a single product. By developing an artificial pancreas that combines an insulin pump, continuous glucose sensor, and algorithm, real-time blood glucose measurement, insulin infusion adjustment, and automatic infusion become possible for users.

Additionally, IoFlow will use the funds for R&D and license acquisition related to its subsidiary focused on wearable artificial kidneys. On the 6th, it established a specialized subsidiary in the U.S. for wearable artificial kidney development, expanding its business area into the dialysis field.

An IoFlow representative stated, "Based on IoFlow’s unique technological capabilities, we will accelerate new business areas including wearable artificial pancreas and artificial kidneys."

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