SynthecaBio Acquires Third Series CBs to Strengthen Financial Soundness and Enhance Shareholder Value

SynthecaBio, an AI-based drug development company led by CEO Jung Jongseon, announced on July 21 that it has acquired convertible bonds (CBs) with a face value of 8 billion KRW from its third series of bearer, coupon, unsecured private placement CBs prior to maturity, as part of efforts to strengthen its financial soundness and enhance shareholder value.

These bonds were issued on April 26, 2024, to Korea Investment Partners (Korea Investment Re-up II Fund) in a total amount of 10 billion KRW, with a zero percent coupon rate and a maturity interest rate of three percent.

This CB acquisition is being carried out through negotiations with the bondholder and is a preemptive measure to address potential stock dilution and overhang risk that could arise from conversion into shares. SynthecaBio explained that it is able to voluntarily acquire the bonds early without external borrowing, as it holds the full subscription amount in cash.

The company plans to either cancel or resell the acquired CBs depending on future circumstances, with the aim of minimizing any impact on the number of outstanding shares. SynthecaBio expects that this move will reduce market uncertainty and make a tangible contribution to enhancing shareholder value.

A SynthecaBio representative stated, "Our proactive response using available cash not only reduces debt and eliminates repayment risk, but also reflects our commitment to shareholder-friendly management," adding, "We will continue to maintain a shareholder-centered management approach based on a stable financial structure."

Meanwhile, SynthecaBio is engaged in a variety of new drug development platform businesses, including AI-based synthetic drugs, antibody therapeutics, and cancer vaccines.

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