HLB Pharmaceutical said on the 13th it decided on a rights offering with a public offering of forfeited shares to raise 120 billion won. The funds secured will be used for new plant construction, research and development (R&D), and operating capital.
According to the Financial Supervisory Service's electronic disclosure the same day, HLB Pharmaceutical held a board meeting and decided on a 120 billion won rights offering to secure facility and operating funds. Through this offering, it will newly issue 10,762,332 common shares, with the planned issue price set at 11,150 won per share. The record date for new share allocation is July 1.
The largest portion of the funds, 55 billion won, will be used to build the new plant in Hyangnam. HLB Pharmaceutical plans to more than double its annual production capacity after the new plant is completed, from the current 300 million tablets to about 700 million tablets.
The company expects the Hyangnam new plant to become a production base that responds to future demand growth while also serving as a manufacturing platform for various pharmaceuticals, including the liver cancer drug "Rivoceranib."
Twenty-five billion won will be invested in R&D. HLB Pharmaceutical plans to expand development of improved new drugs and generics and increase the share of in-house products to improve profitability. In addition, it will accelerate the advancement of the long-acting injectable platform "SMEB" and the discovery of new pipelines.
Twenty-five billion won has been allocated for operating capital. The funds will be used across product manufacturing and overall business operations, including raw and subsidiary material purchases and payments for outsourced processing.
The remaining 15 billion won will be used to repay borrowing fund. The company plans to strengthen financial stability by reducing the debt ratio and interest burden.
Park Jae-hyeong, CEO of HLB Pharmaceutical, said, "The Hyangnam new plant will become the core base of HLB Pharmaceutical's manufacturing competitiveness," adding, "Along with expanding production capacity, we will also bolster R&D investment in key pipelines such as improved new drugs and the SMEB platform."