L&K Bio Issues 20 Billion KRW CB... "New Product Development and Overseas Supply Chain Expansion"

[Asia Economy Reporter Jang Hyowon] Global spinal implant specialist L&K Bio announced on the 16th that it has issued 20 billion KRW worth of anonymous, unsecured private convertible bonds (CB) to raise operating funds.

L&K Bio plans to use the secured funds to develop new products and establish new branches in the United States, Europe, and Asia. The company intends to utilize the funds for aggressive marketing, including expanding its supply chain.

Jongik Park, Vice President of Strategic Planning at L&K Bio, who led this deal, stated, "This fundraising is to secure operating funds to accelerate L&K Bio's ongoing core businesses, especially to expedite the development of the innovative new series currently under development. It will serve as seed money for L&K Biomed's quantum leap to become a global major company."

L&K Biomed's three self-developed innovative products have been certified by the U.S. FDA since September 2019. The company currently holds competitiveness in the MIS System (Minimally Invasive Surgery System) and Cervical implant systems.

Additionally, around May, L&K Biomed secured an opportunity to supply products to U.S. Veterans Affairs hospitals, and by obtaining CE certification, it gained the chance to sell innovative and sterilized products in the European and Australian markets.

Furthermore, L&K Biomed plans to expand its domestic business by supplying spinal implant products to the Korean market together with its affiliate Rootloc, which was listed on KONEX at the end of last year. Accordingly, the sales proportion, which had mostly occurred in the U.S., is expected to expand significantly to domestic, European, and Southeast Asian markets.

In May, anticipating an increase in export volume, the company held a completion ceremony for its second factory in Yongin, which can double the existing production capacity, and began full-scale production of sterile spinal implant products using sterilization processes.

CEO Geunju Park said, "This fundraising will ultimately produce the best outcome where both investors and the company win. L&K Biomed, which receives love calls from giant U.S. companies, now only needs to make a quantum leap based on its outstanding technology, product competitiveness, and sufficient funds."

Meanwhile, the issued CB has no coupon interest or maturity interest, with only a 3% annual interest rate attached to the call option. The maturity date is July 16, 2026, and the conversion price is 20,773 KRW (par value 500 KRW per share). The new shares to be issued upon conversion amount to 962,788 shares, representing 6.71% of the total number of shares.

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