[Asia Economy Reporter Lee Seon-ae] HL Biopharma and HL Biopharma Life Science announced on the 26th that they will conduct a 100% stock dividend.
Existing shareholders will receive one free share for each share they hold. The two companies plan to use stock issuance premiums worth 370 billion KRW and 280 billion KRW, respectively, as the source for the stock dividend. HL Biopharma will use 26.5 billion KRW and HL Biopharma Life Science will use 23.5 billion KRW for this stock dividend, leaving sufficient capacity for future stock dividends. Both companies have set March 16 as the record date for new shares, and the scheduled listing date for the new shares is April 1.
A company official explained, "We were unable to pay dividends due to long-term new drug development, and especially during the delay of NDA (New Drug Application) caused by COVID-19, unconfirmed investigations by financial authorities were reported, causing a sharp drop in stock prices. This decision was made from the perspective that the company must do everything it can for shareholders who have trusted and patiently waited for the company."
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