SL Bionics to Pursue Paid-in Capital Increase Following Free Capital Reduction

[Asia Economy Reporter Jang Hyowon] SL Bionics announced on the 19th that it will carry out a 10-for-1 reverse stock split of its common shares with a face value of 500 won to offset accumulated deficits and improve its financial structure.

SL Bionics disclosed on the 17th that its sales for the first half of this year were approximately 13.5 billion won, a slight increase compared to the same period last year. The operating loss for the first half was about 5.2 billion won, recording a loss of approximately 4.3 billion won compared to about 880 million won in the previous year.

A representative of SL Bionics stated, “To improve our financial structure, we will proceed with a reverse stock split and a paid-in capital increase, allocating about 40 billion won as funds for purchasing a factory building to drive sales growth and profitability improvement. This will help us improve our financial structure and proactively respond to the recovery period of the LED market.” He added, “The operating loss disclosed on the 17th includes tax payment details reflected as losses, and we will do our best to turn operating profit positive.”

Meanwhile, SL Bionics has contracted to purchase Lumens’ Yongin factory located in Yongin for 41.75 billion won to boost sales growth and profitability.

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