Cellid has faced criticism from investors as it has decided to pursue another paid-in capital increase less than a year after making the decision for one in May last year.
The bio corporation Cellid announced on the 18th of this month that it has decided to carry out a paid-in capital increase worth 24.15 billion won (8.4 million shares). After allocating shares to its shareholders, any unsubscribed shares will be offered publicly. The planned issuing price is set at 2,875 won, and the record date for allocating new shares is next month on the 21st. The shares issued through the paid-in capital increase will be listed on the 25th of this month after subscription from June 3 to 4.
Cellid explained that the funds raised this time will be utilized to complete the global phase 3 clinical trials for its Omicron-targeted COVID-19 vaccine and to advance the clinical trials for its cancer immunotherapy vaccine pipeline. Cellid's representatives noted, "There is a possibility that the results will not meet expectations during the clinical trials and product approval process, which may lead to changes or abandonment of commercialization plans," and urged investors to carefully consider the disclosed investment risks.
Cellid decided on a shareholder allocation paid-in capital increase on May 24 last year and, after a correction announcement, raised 23.175 billion won in August of the same year. Less than a year later, it is pursuing a capital increase again. Following this announcement, Cellid's stock price plummeted by 12.3%, from 4,020 won to 3,525 won from the 19th to the previous day.
As investors expressed concerns about the potential for further stock price declines due to Cellid's repeated capital increases amid ongoing poor performance over the years, Cellid has never escaped from operational and net losses since its listing in February 2019. The operational loss of 3.5 billion won in 2019 grew to 12.2 billion won in 2023. Last year, it recorded revenues of 4.2 billion won, an operational loss of 12 billion won, and a net loss of 12.3 billion won.
Facing the possibility of being designated as a management item due to failing to meet the KOSDAQ listing requirement of over 3 billion won in annual sales, the company merged with the unrelated baking materials and equipment sales platform, ForBaker, in May last year. ForBaker generated revenues of 3.8 billion won last year.
Shareholders criticized the company in forums, saying, "They are indiscriminately increasing paid-in capital and just reaching out to shareholders," and "I sold my shares at a loss of 5 million won as I think the stock price will drop further." Most of Cellid's minority shareholders have entered a loss zone. According to NH Investment & Securities, 99.61% of Cellid investors are in the red, with an average return of minus (-) 70.65%.