Zaigle, Early Redemption of 10 Billion KRW 2nd Round CB... "Strategic Choice for Management Efficiency"

[Asia Economy Reporter Yoo Hyun-seok] Jaigle, which is pursuing business with the goal of becoming a well-being healthcare company, announced on the 22nd that it has decided to early redeem the second tranche of privately placed convertible bonds (CB) worth 10 billion KRW.

The reason for deciding on this early redemption is a choice based on management strategy. As a full-scale interest rate hike is expected to be discussed from the second half of this year, the company anticipated that faster repayment would be more advantageous. It also judged that it would be necessary for future strategic investment attraction, leading to the decision for early redemption. Additionally, concerns about dilution of investors' stock value were reflected in this decision.

A Jaigle official said, "Although the second tranche CB was issued under favorable conditions, we analyzed the overall situation of the company and concluded that the benefits of early redemption would be greater from a management strategy perspective," adding, "The funds for this redemption were raised under better conditions more advantageous to the company." He continued, "Currently, the company holds sufficient funds that exceed the amount needed for this temporary repayment, so there will be no issues with operational fund management or the utilization of funds required for future M&A."

Since last year, Jaigle has been implementing a management efficiency strategy. In 2020, it recorded an operating profit of 1.3 billion KRW, quickly turning around from an operating loss the previous year. In the first quarter of this year, it also significantly reduced the deficit compared to the same period last year. The company is preparing to launch medical device products that have obtained GMP certification for its manufacturing plant and medical device approval. Alongside this, it is simultaneously focusing on reinforcing its research personnel and its own R&D projects necessary for the growth of related well-being healthcare businesses.

In May, Jaigle signed a business development agreement with Hyundai Asset Management to make corporate efforts to discover new businesses. Based on preparations for new businesses, Jaigle plans to grow as a platform company specialized in the healthcare field unique to Jaigle, with interest in medical and bio infrastructure-related businesses in the well-being healthcare sector.

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