NCTRON Raises Total 18 Billion Won in Funding... "New Business Momentum"

[Asia Economy Reporter Jang Hyowon] Ncitron announced that it successfully raised a total of 18 billion KRW through a 3 billion KRW third-party allotment paid-in capital increase on December last year and the recent issuance of the 11th and 12th series convertible bonds.

The 11th and 12th series convertible bonds issued this time are unsecured convertible bonds without refixing. The 11th series convertible bonds worth 13 billion KRW will be used as operating funds. The 12th series convertible bonds worth 2 billion KRW will be used to repay 1 billion KRW of debt, and the remaining 1 billion KRW will also be used as operating funds.

An Ncitron official stated, "The recently raised funds have accelerated the promotion of new businesses. We plan to advance rice milling and distribution businesses, and internal reviews on bio new businesses are underway."

Ncitron recorded sales of 10.3 billion KRW last year, a 4.2% increase compared to 2019. Operating losses amounted to 3 billion KRW, reducing the loss margin by about 2.3 billion KRW compared to the 5.3 billion KRW operating loss in 2019, but it has been operating at a loss for four consecutive years, triggering designation as a management target.

It was designated as a management target due to pre-tax losses exceeding 50% of equity capital for two consecutive years in 2019. Although this reason was resolved this time, new reasons such as continued operating losses arose based on internal settlement results. Once the audit is completed and operating losses are confirmed, Ncitron's designation as a management target is expected to continue for another year.

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