CG Inbites Withdraws Third-Party Allocation Capital Increase... "Overhang Concerns Resolved"

CG Inbites announced on the 19th that it has resolved the overhang issue (potential sellable shares) of 4,382,470 shares related to the third-party allotment paid-in capital increase. This follows the final confirmation of the invalidation of the new share issuance as the company decided not to appeal the lawsuit seeking to nullify the new share issuance.

CG Inbites CI. [Image provided by CG Inbites]

Previously, on June 13, CG Inbites decided to conduct a third-party allotment paid-in capital increase in the form of redeemable convertible preferred shares (RCPS) targeting Hyundai Investment Partners S&H New Technology Business Investment Association for research and development, operational funds, and other management purposes. Redeemable convertible preferred shares are preferred shares that carry the right to be redeemed by the issuing company after a promised period or converted into common shares of the issuing company.

The duration of the redeemable convertible preferred shares was five years from the issuance date. Investors who participated in the capital increase could exercise the redemption right from June 24, 2024, to June 24, 2027, and convert to common shares from June 24, 2023, to June 24, 2027. The company explained that all potential overhang issues have been resolved through the withdrawal of the new share issuance.

CG Inbites plans to secure cash liquidity necessary for new drug development and clinical acceleration by selling assets that are not part of its core business areas. Through this, the company aims to establish a management environment capable of new drug development without additional paid-in capital increases.

A CG Inbites official stated, "At this point, the actual overhang issue of about 6.7 million shares after refixing has been resolved," adding, "We will focus on enhancing financial soundness through the sale of non-core assets and cost reduction, and additionally securing growth funds for research and development (R&D)."

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