HLB and HLB Life Science Announce 100% Free Share Capital Increase... "Enhancing Shareholder Value"

[Asia Economy Reporter Jang Hyowon] HL Biopharma and HL Biopharma Life Science announced on the 26th that they will conduct a 100% stock dividend. Existing shareholders will receive one free share for each share they hold.

Both companies plan to use stock issuance premiums worth approximately 370 billion KRW and 280 billion KRW, respectively, as the source for the stock dividend. HL Biopharma will use 26.5 billion KRW and HL Biopharma Life Science will use 23.5 billion KRW for this stock dividend, leaving sufficient capacity for future stock dividends. Both companies have set March 16 as the record date for new shares, and the scheduled listing date for the new shares is April 1.

Recently, HL Biopharma's stock price plunged after reports that it was under investigation by financial authorities over allegations of false disclosure, accompanied by malicious rumors such as trading suspension. Despite the company stating that there was no false disclosure and that it was not subject to trading suspension, the stock price has not recovered.

Regarding this stock dividend, a company official stated, "We have not been able to pay dividends due to long-term new drug development, and especially during the delay of NDA caused by COVID-19, unconfirmed reports about the financial authorities' investigation caused the stock price to plunge. This decision was made from the perspective that the company must do everything it can for shareholders who have trusted and patiently waited." This is interpreted as an effort to enhance shareholder value amid the recent stock price decline.

Regarding the investigation by financial authorities, the company said, "We are diligently clarifying the allegations of false disclosure and are confident that the suspicions will eventually be resolved."

HL Biopharma is developing an oral anticancer drug, 'Riboceranib,' through its U.S. subsidiary Elevate Therapeutics.

They are preparing NDA (New Drug Application) materials for the treatment of terminal gastric cancer and are conducting global Phase 3 first-line clinical trials for liver cancer, Phase 2 first-line trials for cholangiocarcinoma, and Phase 2 second-line trials for gastric cancer.

Another U.S. subsidiary, Immunomic Therapeutics, is conducting clinical trials for treatments including malignant glioblastoma.

HL Biopharma Life Science is conducting domestic Phase 3 first-line clinical trials for Riboceranib in liver cancer and Phase 3 clinical trials for the targeted anticancer drug Pyrotinib for breast cancer, for which it secured rights in September last year.

According to financial investment industry data, HL Biopharma Group's cash holdings are approximately 400 billion KRW, which is considered sufficient to fund ongoing new drug research and development.

An investment industry official said, "HL Biopharma Group is expected to receive significant royalty income from Hansoh Pharmaceutical starting this year. This year, when new drugs become visible and royalty income is confirmed, is expected to be an important turning point for growth for this bio company."

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