[After CB Issuance] NKMAX Rises 100% in One Month... Investors 'Relieved'

[Asia Economy Reporter Yoo Hyun-seok] Investors in NKMAX's convertible bonds (CB) are smiling. As news emerged that the NK (natural killer) cell therapy undergoing clinical trials in the United States showed effectiveness, the stock price nearly doubled in about a month, allowing investors to realize profits through stock conversion.

According to the financial investment industry on the 17th, NKMAX issued CBs worth 10 billion KRW and 20 billion KRW in May last year, and 23.2 billion KRW in December. These were the 9th, 10th, and 11th issuances, totaling 53.2 billion KRW. At the time of issuance, the conversion prices were 12,447 KRW for the 9th issuance, 13,150 KRW for the 10th, and 13,389 KRW for the 11th. However, due to stock price declines, the conversion prices for the 10th and 11th issuances were lowered to 12,808 KRW and 12,871 KRW respectively, excluding the 9th issuance.

The 9th and 10th issuances have been convertible since May, and the 11th issuance can be converted into stock starting this November. However, the 9th and 10th issuances have not yet been converted into stock because NKMAX's stock price remained close to the conversion prices until recently. After closing at 14,950 KRW on May 3rd, the price steadily declined to 12,500 KRW on August 27th.

However, the stock price surged sharply from the end of last month. The closing price on the previous day was 24,250 KRW, a 94% increase compared to the closing price on August 27th. This is interpreted as reflecting expectations for NKMAX's NK cell therapy ‘SNK01’. The company disclosed interim results of a Phase 1 clinical trial in the U.S. on the 30th of last month, combining Merck and Pfizer's immune checkpoint inhibitor ‘Bavencio’. The preliminary analysis involved 13 patients with terminal sarcoma who could not be treated with existing drugs, and 8 of them showed therapeutic effects. Additionally, one patient achieved complete remission with most cancer cells eliminated.

If investors of the 9th and 10th CB issuances apply for conversion and the closing price remains at the previous day's level until the stock listing, they can expect returns of 94.83% and 84.41%, respectively. Meanwhile, the 11th issuance, convertible in November, is expected to yield an 88.40% return.

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