Vivozon Pharmaceutical shares fell on news that the company will conduct a large paid-in capital increase.
As of 9:10 a.m. on the 14th, Vivozon Pharmaceutical was trading at 5,550 won, down 890 won (13.73%) from the previous session.
Vivozon Pharmaceutical said the same day it will carry out a shareholder-allotted paid-in capital increase worth 50 billion won. The new shares to be issued through this offering total 10,615,000, with an expected issue price of 4,710 won. Any unsubscribed shares after the shareholder allotment will be underwritten by the lead manager, NH Investment & Securities.
Funds raised through the paid-in capital increase will be used to improve the financial structure and for operating capital. About 23 billion won will be allocated to repay principal and interest on convertible bonds, with the remainder used for the transfer of exclusive due diligence rights for an injectable, and for payments for raw and subsidiary materials.
A company official said financial capacity weakened due to large research and development spending for marketing authorization of Onafraju and preparations for launch, adding, "With this funding, we will pursue both new drug commercialization and financial soundness."