Investors in the new convertible bonds (BW) issued by the drug development corporation GemVax are expected to reap substantial profits after a year.
GemVax announced on the 16th that the 8th series BW investors decided to exercise their subscription rights. BW is a financial product that combines the right to acquire corporate bonds and new shares. BW investors can exercise their right to purchase new shares at a predetermined price after a certain period.
The exercise price for the subscription rights of the 8th series BW from GemVax is 11,886 won. The total exercise amount is 10.44 billion won, with 878,325 new shares set to be listed on August 1.
GemVax issued the 8th series BW valued at 11.7 billion won in July of last year. Mare New Technology Association No. 56 and Kappa I&T were among the investors. The reason they quickly converted the bonds into GemVax shares as soon as they could exercise their subscription rights is due to the sharp rise in the stock price.
GemVax's stock price skyrocketed from 14,590 won at the beginning of this year to a closing price of 58,100 won on that day, roughly quadrupling. Last month, it even climbed to 72,700 won, setting a new record high. The designation of GemVax's treatment drug for progressive supranuclear palsy (PSP), 'GV1001', as a rare drug by the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) last month stimulated investor sentiment.
If GemVax maintains its current stock price level until the new share listing, the 8th series BW investors could achieve a revenue return of 388.8% after about a year.
GemVax issued the 10th series BW (5.7 billion won) in December of last year and the 11th series BW (12 billion won) and the 9th series BW (10 billion won) in February of this year. The timing for exercising subscription rights will return from December this year to February and April 2026. The exercise prices for these BWs are also in the 10,000 won range, so even if GemVax maintains its current stock price level, they can reap significant profits.