[After CB Issuance] Cytogen Scores Jackpot with 3rd Round Investors... Expecting 200% Returns

[Asia Economy Reporter Hyunseok Yoo] Cytogen convertible bond (CB) investors have hit the jackpot. The stock price nearly tripled just over a year after issuing the CB, significantly increasing the valuation gains.

According to the Financial Supervisory Service's electronic disclosure system (DART) on the 28th, Cytogen announced that the 3rd tranche of CB conversion shares will be listed on the stock market on the 9th of next month. The number of shares to be converted this time is 148,513, accounting for 2.62% of the total. The scale is 3 billion KRW. The conversion request period is from the 25th of last month until August 25, 2025. The issuers are Cheil Bio Fund and T&C Asset Management, with 7 billion KRW and 3 billion KRW respectively.

The 3rd tranche CB was issued last September with a scale of 10 billion KRW. It was planned to allocate 2 to 4 billion KRW for facility investment, 3 to 6 billion KRW for clinical trials, 2.5 to 5 billion KRW for overseas market development, and 1.5 to 3 billion KRW for operating funds. At the time of issuance, the conversion price was 20,200 KRW, and the standard and maturity interest rate was 0%. The company invested a total of 4.2 billion KRW in facilities and operating funds out of the 10 billion KRW. The remaining funds are kept in short-term financial products such as time deposits as the time to use the funds has not yet come.

The conversion period has arrived without any adjustment to the conversion price. The closing price of Cytogen yesterday was 66,100 KRW, approximately a 227% increase from the conversion price. Calculated in terms of the amount of CB to be converted, it is about 9.8 billion KRW. If the current stock price continues until the listing day on the 9th of next month, investors can gain more than 6 billion KRW in profit.

Cytogen was established in 2010 and entered the KOSDAQ market in 2018. It is a company that commercialized liquid biopsy technology using circulating tumor cells (CTC). Liquid biopsy refers to detecting DNA, proteins, and other substances derived from specific tissues in liquids such as blood or urine to diagnose abnormalities in tissues.

Compared to traditional tissue biopsy, it is characterized by efficiently acquiring cancer information. It has the advantage of being applicable throughout all stages from the discovery of candidate substances for new drug development to clinical trial phases. In particular, based on these strengths, it is interpreted that expectations for growth have emerged as the company has signed multiple partnerships with various global pharmaceutical companies and biotech firms.

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