Wooridle Hubrain to Raise 46 Billion KRW in Capital Increase... "Expanding Pharmaceutical and Medical Device Distribution Business and Strengthening Competitiveness"

[Asia Economy Reporter Yoo Hyun-seok] Wooridle Hubrain announced on the 31st that it will proceed with a paid-in capital increase worth 46 billion KRW to increase sales and create synergy effects related to the distribution business of pharmaceuticals and medical devices.

This paid-in capital increase will be used as operating funds for purchasing products related to pharmaceuticals and medical devices. The subscription method is a rights offering to shareholders followed by a general public offering of unsubscribed shares. The planned issue price is 1,695 KRW per share, and 27,138,644 new common shares will be issued.

Wooridle Hubrain held a board meeting on the same day and resolved accordingly, as disclosed. On the 11th, Wooridle Hubrain completed a 100% acquisition of shares in H Bio & Company, a medical device distributor, and J&SPHARM, a pharmaceutical distributor, and decided to merge with these companies on the same day. Through the merger with the acquired companies, which showed operating profits about twice as high as peer companies, Wooridle Hubrain is confident in turning its operating profit to positive.

Starting with the acquisition and merger of pharmaceutical and medical device distributors, Wooridle Hubrain plans to significantly expand its client base by cooperating with the distribution networks held by the existing companies. It also aspires to leap forward as a comprehensive medical-centered company by establishing a professional and systematic supply infrastructure.

Earlier, on the 30th, Wooridle Hubrain sold its subsidiary, Greenbell Systems. The acquirer is AJ Networks Co., Ltd., and the disposal price is about 3.8 billion KRW. Wooridle Hubrain acquired Greenbell Systems, whose main sales source was the computer storage business, for 4.9 billion KRW in 2017 for new investment purposes, but expressed its intention to focus on qualitative growth of its core business in pharmaceutical and medical device distribution and boldly decided to withdraw from that business.

This paid-in capital increase will be conducted by a rights offering to shareholders followed by a general public offering of unsubscribed shares. The record date for new share allocation is May 4, the final issue price determination is June 2, and the scheduled listing date of the new shares is June 28 of the same year.