The stock price of Korea Securities Dealers Automated Quotations listing company Cha Biotech is showing weakness in early trading on the 23rd. Cha Biotech announced a capital increase through a rights offering and a public offering of forfeited shares amounting to 250 billion won on the afternoon of the 20th.

Cha Biotech Research Institute /Courtesy of Cha Biotech

As of 9:43 a.m. on that day, Cha Biotech is trading at 11,090 won, down 25.37% (3,770 won) compared to the previous trading day.

Earlier, Cha Biotech disclosed on the 20th that it decided to conduct a capital increase through a rights offering and a public offering of forfeited shares amounting to 250 billion won. The newly issued shares will amount to 23,148,150 shares, with an issuance price of 10,800 won per share. The amount of new shares issued by Cha Biotech is about 41% of the existing shares.

Cha Biotech plans to invest 110 billion won of the 250 billion won raised through the capital increase into its affiliate Cha Healthcare and Matica Holdings. It will allocate 100 billion won for research and development (R&D) and 20 billion won each for production facility and working capital.