BioLeaders Redeems and Cancels 11.6 Billion KRW Convertible Bonds... "Strengthening Financial Stability"

[Asia Economy Reporter Eunmo Koo] BioLeaders announced on the 25th that it will cancel convertible bonds (CB) worth 7.6 billion KRW. BioLeaders had previously canceled 4 billion KRW worth of 4th series convertible bonds. Currently, a total of 11.6 billion KRW in CBs have been canceled, and the company plans to repay all CBs upon maturity in the future to reduce its liabilities.

A company representative stated, “Through the cancellation of CBs, it is expected that the debt ratio will decrease and financial structure stability will increase,” adding, “This will resolve potential overhang issues and minimize stock price volatility risks, thereby enhancing shareholder value in the long term.”

BioLeaders is currently developing treatments for Duchenne muscular dystrophy (BLS-M22), cervical intraepithelial neoplasia (BLS-M07), cervical epithelial dysplasia (BLS-H01), as well as treatments and vaccines for COVID-19. Last month, the company successfully completed the Phase 1 clinical trial for the Duchenne muscular dystrophy treatment, and the cervical intraepithelial neoplasia treatment is undergoing a Phase 2b clinical trial at 17 university hospitals nationwide, having completed dosing of the final clinical subjects. Results are expected to be announced as early as this year.

The company said, “We will strive to proceed with clinical trials of key pipelines without delay by utilizing the 31.3 billion KRW raised through a rights offering,” and added, “By canceling convertible bonds, we will eliminate potential stock dilution factors and work to maximize corporate value.”

BioLeaders decided on a rights offering in August to secure funds for new drug development and improve its financial structure, recently successfully raising 31.3 billion KRW. Chairman Youngchul Park participated up to the maximum limit of 120% of the shareholder allocation, demonstrating his commitment to responsible management.