This article was displayed on the ChosunBiz MoneyMove (MM) site at 6:01 p.m. on Jan. 21, 2026.
Matica Biotechnology (hereinafter Matica Bio), a U.S. cell and gene therapy (CGT) contract development and manufacturing organization (CDMO) affiliate of CHA Biotech within CHA Bio Group, is planning to issue convertible bonds (CBs) worth up to 40 billion won. It is interpreted that the company chose external funding for operating capital as losses accumulated and its cash shortage worsened.
According to the investment banking (IB) industry on the 21st, Matica Bio recently decided to issue privately placed, unsecured, bearer CBs and began a demand survey targeting institutional investors. Shinyoung Securities was selected as the lead arranger, and it is understood that an information memorandum (IM) was distributed to domestic private equity fund (PEF) managers and asset management firms.
The issuance size was set at about 30 billion to 40 billion won. Although detailed terms such as the conversion price have not been finalized, the company is said to have initially proposed a five-year maturity with an annual maturity interest rate of 8%. It is also expected to include an early repayment claim right (put option) allowing bondholders to demand early repayment one year after issuance.
Matica Bio is reportedly planning to use the funds raised from the CB issuance for operating capital. Accumulated losses have even depleted operating cash. Matica Bio, established in 2018 as a CGT CDMO specialist and a subsidiary of CHA Biotech, posted cumulative net losses of 139.6 billion won through 2024.
Matica Bio was originally viewed as CHA Bio Group's future cash cow. Because its business structure could generate stable revenue once order volumes were secured, it was called the foundry of the bio industry. CHA Bio Group incorporated Matica Bio as CHA Biotech's U.S. subsidiary and immediately began building a factory.
However, after the factory was completed in 2022, Matica Bio's annual losses rose to as much as 40 billion won. Although the company chose clinical-stage drug production as its main business, U.S. small and mid-size bio ventures struggled to attract investment amid rising interest rates. Repeated postponements of clinical plans led to delayed orders and continued losses.
Matica Bio's current push to issue CBs is also seen as having the character of an emergency capital infusion. At the end of 2024, there was a plan for parent company CHA Biotech to inject 20 billion won raised from a rights offering into Matica Bio, but that funding was scrapped after shareholders protested and the size of the rights offering was reduced.
Some in the market even speculate that Matica Bio is in such financial distress that it may have difficulty operating the factory. That view stems from the company offering a high-interest card of an 8% annual return at maturity. Guaranteeing an 8% annual return at maturity is striking compared with typical CB maturity returns of around 3%.
Domestic institutional investors are said to have little interest. In addition to signaling that the company is desperate for new funding by offering an 8% annual interest on CBs, the fact that the funds raised would be used for 'operating capital' to cover losses rather than for investments in future growth was a negative factor.
An IB industry official said, "Companies with manufacturing facilities generally consider bank loans before capital market fundraising, so saying they turned to CB funding could mean loans were not available," and added, "The fact that the factory is in the U.S. is also a concern for domestic investors."
Meanwhile, CHA Bio Group said it is reviewing various measures to raise operating funds for Matica Bio. A group official said, "We have decided not to proceed with the CB issuance that was being pursued with Shinyoung Securities," and added, "Matica Bio is reviewing various measures to raise operating funds."