Small-scale bio corporations listed on the KOSDAQ have begun to meet with individual and institutional investors to promote their companies. ADBIOTECH and Kangstem Biotech disclosed their business diversification and outcomes and actively shared their future business plans with investors.
On the 17th, a presentation by ADBIOTECH, a company specializing in veterinary medicines, and Kangstem Biotech, a stem cell development firm, took place at the Corporate Day hosted by Independent Research Value Finder. Corporate Day is an investor relations seminar held by a securities firm's research center, and this event garnered interest from investors as it was hosted by independent research rather than a securities firm. On that day, the representatives of both corporations introduced their companies directly to individual and institutional investors.
ADBIOTECH develops immune antibody technology using egg-derived immunoglobulin (lgY) and a Nanobody-based antibody platform technology. However, in the first half of this year, it has officially expanded its business scope into food disposal solutions and antifungal microorganisms.
On that day, ADBIOTECH emphasized that it is the only company supplying microorganisms used in LG Electronics' food disposal solutions for large rental companies. The new products from the two corporations are expected to be released as early as May to June this year. They are also in discussions for supply agreements with apartment built-in companies and large-scale school meal suppliers, with mass orders anticipated within the first half of the year.
They also actively explained the funding concerns that are considered investment risks for the company. ADBIOTECH plans to conduct a paid-in capital increase subscription in the form of a public offering from the 5th to the 6th of next month. With a total of 8 billion won, 3.5 billion won will be allocated for operating funds and 4.5 billion won for debt repayment. The planned issuance price for new shares is 1,987 won.
In particular, the company plans to prepare for the first early repayment request (put option) period for the 6th tranche convertible bonds (CB), which are due in August this year, with funds secured through the capital increase. As of the 17th, ADBIOTECH's stock price was 2,030 won, which is 20% lower than the conversion price of 2,549 won, indicating a high possibility of a put option. Jeong Hong-geol, the CEO of ADBIOTECH, noted, "If funding does not go through, we plan to secure loans through the Korea Small Business and Startups Agency, but as funding influx is also expected in the first half, we will wait and see further."
Regarding the deficits of its subsidiary, MarketTree, an online platform company for traditional markets, ADBIOTECH explained that it plans to explore mergers and acquisitions (M&A) and strategic partnerships within this first half.
On that day, Kangstem Biotech, a stem cell development company, also expanded its pipeline and worked to attract investors. Kangstem Biotech announced that its 'atopic dermatitis treatment using allogeneic umbilical cord blood-derived stem cells (Type 1)' has completed approval from the Japanese Regenerative Medicine Committee and is awaiting final review from the Ministry of Health, Labour and Welfare at the end of next month.
Lee Gye-jong, CFO of Kangstem Biotech, emphasized, "It is true that the hurdles for approval from the Japanese Ministry of Health, Labour and Welfare are high, but if approved, immediate supply will be possible," calling it "an opportunity to change the company's fundamentals." Kangstem Biotech aims to achieve annual revenue of 30 billion won by 2029.
The amendment to the Act on the Safety and Support of Advanced Regenerative Medicine and Advanced Bio-Medicines (Advanced Regenerative Medicine Act), effective from the 21st of this month, could also serve as a background for Kangstem Biotech's growth. Previously, there were restrictions on using clinical-stage cell and gene therapies for treatment purposes, but the amendment has relaxed these regulations to allow the use of clinical-stage medicines for patients with rare and intractable diseases.
In particular, with Kangstem Biotech's focus on severe atopic dermatitis and osteoarthritis being categorized as 'intractable diseases' in the improvement plan, it will be able to broaden the scope of its clinical research subjects.