The stock price of MEDIPOST, the top umbilical cord blood bank corporation in Korea, fell by more than 10%. The news that MEDIPOST is seeking to raise around 100 billion won to finalize its clinical trials in the United States seems to have had an impact. (☞ MEDIPOST pushes for raising 100 billion won… Accelerating U.S. clinical trials for stem cell treatments)
MEDIPOST stocks ended trading at 11,840 won on the KOSDAQ market on the 2nd. The stock price dropped by 10.64% (1,410 won) compared to the previous day. In the subsequent after-market, as of 5:15 p.m., the decline slightly decreased, and the stocks were traded at 11,970 won.
Since MEDIPOST's market capitalization was approximately 450 billion won the previous day, it appears that investors concerned about the potential issuance of large convertible bonds (CB) or a third-party allocation of new shares decided to 'sell.'
MEDIPOST stated in a statement that, "We are currently considering attracting investment to secure funds in preparation for ongoing clinical trials in the United States and Japan, but the amounts and timing have not yet been specifically determined."
It also noted, "We promise to transparently provide all crucial information for investment decisions, including the status of future clinical trials, in a timely manner according to relevant regulations."
MEDIPOST is a stem cell-based biotechnology corporation founded in 2000 by Yang Yoon-seon, a former professor at Samsung Seoul Hospital. It entered the KOSDAQ market in 2005 and developed 'CATIS,' the first stem cell treatment in Korea. CATIS is currently being sold in Korea with approval from the Ministry of Food and Drug Safety, but is still preparing for Phase 3 trials in the United States.