[Market Focus] Vivozon Pharmaceutical Drops Over 10% on News of 50 Billion Won Paid-in Capital Increase

Vivozon Pharmaceutical is experiencing a sharp decline in early trading on October 14 following news of a paid-in capital increase worth 50 billion won.

As of 9:29 a.m. on this day, shares of Vivozon Pharmaceutical on the KOSDAQ market are trading at 5,450 won, down 15.90% from the previous trading day. The stock opened at 5,060 won and at one point during the session fell as low as 5,020 won.

The company announced the previous day that it had decided on a paid-in capital increase through a rights offering and a public offering of forfeited shares. The new shares to be issued through this capital increase amount to 10,615,000 shares. Based on the expected issue price of 4,710 won per share, the total amount is approximately 50 billion won. Any remaining unsubscribed shares will be underwritten by the lead manager, NH Investment & Securities.

The company stated that the funds raised through this capital increase will be used to strengthen the competitiveness of its pharmaceutical business and to improve its financial structure. A representative from Vivozon Pharmaceutical said, "Our financial capacity has weakened due to large-scale R&D expenditures and preparations for the launch of Onaprazole," and added, "Through this fundraising, we plan to simultaneously pursue the commercialization of new drugs and improve our financial soundness."

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