[Funding] Korea BNC Major Shareholder Participates Again in Capital Increase Using Proceeds from Sold Shares

[Asia Economy Reporter Hyungsoo Park] As Korea BNC is pushing forward with a paid-in capital increase worth 189.2 billion KRW, the largest shareholder and CEO Choi Wankyu sold 1.5 million shares from his holdings.

According to the Financial Supervisory Service's electronic disclosure system on the 11th, CEO Choi sold 1.5 million shares at 18,360 KRW per share, securing 27.54 billion KRW. The company explained that CEO Choi sold the shares to raise funds to participate in the shareholder allocation paid-in capital increase. The sold shares were purchased by domestic institutional investors. CEO Choi's stake in Korea BNC decreased from 25.28% to 22.37%.

CEO Choi will subscribe to 50% of the newly allocated shares. Korea BNC allocated 0.256 new shares per one existing share. CEO Choi is allocated 3,338,984 new shares. Based on the planned issue price of 14,550 KRW per share, this amounts to approximately 48.6 billion KRW. Even if he participates in the subscription for only half of this amount, 24.3 billion KRW is required. CEO Choi sells shares at 18,360 KRW per share and acquires new shares at a lower price. Korea BNC's closing price the previous day was 20,400 KRW.

CEO Choi stated, "As the largest shareholder, I decided to participate in the paid-in capital increase to show responsibility to shareholders, investors, and the underwriters," adding, "Since my financial capacity to participate in the capital increase is limited, I had no choice but to sell some of my shares through a block deal (off-hours large volume sale)." He continued, "We received export approval for botulinum toxin in January 2020 and started exports," and "Last year, we launched functional cosmetics containing hemp."

Korea BNC expects visible results in various businesses including bio, pharmaceuticals, chemically synthesized drugs, health functional foods, and new drug development. Domestic Phase 3 clinical trial approval for botulinum toxin is expected in the second half of this year, and once domestic sales begin, the possibility of improved performance increases. The filler business division recently received approval in Taiwan, and sales approval in China is expected by the end of the year. CEO Choi emphasized, "Last year, research and development expenses and facility investments were high, resulting in a large deficit," and "This year, we have set a goal to increase sales by 20-30% and improve profitability."

Korea BNC will use the raised funds for facility investments, debt repayment, and operating capital. In 2017, it secured land within the advanced industrial complex in Sojeong-myeon, Sejong Special Autonomous City. In October 2020, it completed the Sejong pharmaceutical GMP (Good Manufacturing Practice) factory and underwent an inspection by the Ministry of Food and Drug Safety for GMP compliance approval. Facilities will be established to produce new products such as peptide drugs for diabetes and obesity treatment and specialized drugs for liver disease treatment. The funds raised through the paid-in capital increase will be used as facility funds to build a new factory on the Sejong pharmaceutical factory site. Some of the funds will be used to complete contracts related to COVID-19 treatments.

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