Hurim A-Tech to End Relationship with Canaria Bio, 'Smooth Debt Recovery' Expected

Hurim A-Tech announced on the 1st that it has recovered 2 billion KRW on October 30 and another 2 billion KRW on the 30th of last month from a total bond worth 6 billion KRW held from Canaria Bio M, completing the recovery of 4 billion KRW to date. The remaining balance is scheduled to be recovered on the 29th. Through this, all transaction relationships with the former largest shareholder are expected to be resolved.

Before being acquired by Hurim Robot last year, Hurim A-Tech held bonds worth approximately 17 billion KRW issued by the former largest shareholder. Among these, 11 billion KRW was offset in May during the acquisition of the automotive interior and exterior materials business division from Canaria Bio M. The remaining 6 billion KRW bond was exchanged for the second tranche of convertible bonds with warrants (BW) issued by Canaria Bio.

Hurim A-Tech is proceeding with fund recovery by signing a sales contract with Canaria Bio M for the exchanged convertible bonds with warrants. Following the recovery of a 2 billion KRW down payment on October 31, the intermediate payment was also completed on November 30. Once the final payment is recovered in December, the relationship with Canaria Bio will be fully terminated.

A Hurim A-Tech official stated, “The recovery of bonds held against the former largest shareholder is progressing smoothly,” and added, “We will accelerate the performance growth of the automotive interior and exterior materials business through the recently acquired Asan factory.”

After a management change, Hurim A-Tech focused on stable operation of its core business and improvement of its financial structure, successfully achieving strong results in the third quarter of this year. Cumulative sales and operating profit up to the third quarter recorded 38.2 billion KRW and 2.2 billion KRW, respectively, marking increases of 24.1% and 75.99% compared to the same period last year. The debt ratio also improved by about 10% compared to the third quarter of last year, reaching 22%.

A Hurim A-Tech official emphasized, “The new largest shareholder, Hurim Robot, is practicing responsible management by voluntarily placing all 40.56% of its shares under protective custody,” and added, “We will continue to focus on the core automotive interior and exterior materials business, enhancing shareholder value through new product development and cost reduction.”

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