In early trading on the 3rd, L&C BIO(290650) is plunging 16%. Investor sentiment appears to have frozen on news it will conduct a rights offering worth 140 billion won.
As of 9:11 a.m. that day, L&C BIO is trading on the KOSDAQ market at 43,350 won, down 8,550 won (16.47%) from the previous session.
On the 31st, L&C BIO said it will issue 3.7 million common shares to shareholders to raise 140.6 billion won. The planned issue price is 38,000 won per share, 26.8% lower than the previous day's closing price of 51,900 won. The record date for the new share allocation is Sept. 4, and the payment date is Oct. 22.
Of the funds raised, 105 billion won will be used for facility investment. It will build a global smart factory in Dongtan, Gyeonggi; expand production lines for human tissue and medical devices; build production facilities for products based on human adipose tissue; introduce smart factory and automation equipment; upgrade the global quality control system; and secure materials and supplies. The remainder will be used for operating funds and debt repayment.