Wooridle Hubrain Raises 35.7 Billion KRW Through Paid-in Capital Increase... "Structural Growth Becomes Visible"

[Asia Economy Reporter Yoo Hyun-seok] The final issue price of Wooridle Hubrain's rights offering has been set at 1,315 KRW per share, the same as the first issue price, confirming the total amount raised at 35.7 billion KRW. The company plans to use most of the funds raised for debt repayment and as operating capital focused on pharmaceutical and quasi-drug businesses to sustain its growth momentum.

According to the Financial Supervisory Service's electronic disclosure system on the 6th, the second issue price of Wooridle Hubrain's rights offering, which involves issuing 27,138,644 new shares, was initially set higher at 1,365 KRW than the first issue price of 1,315 KRW. However, since the final issue price is determined by the lower of the first and second issue prices, the final issue price was fixed at 1,315 KRW.

With this capital increase, Wooridle Hubrain's equity capital has grown to 105.7 billion KRW, marking the start of its full-scale expansion. Earlier, the company completed the absorption merger of its two subsidiaries, ‘J&SPHARM’ and ‘H Bio & Company,’ laying the foundation to enter its targeted comprehensive medical-centered enterprise. The company plans to intensify its focus on pharmaceutical and quasi-drug businesses and actively pursue investment portfolio projects linked to these sectors.

A representative from Wooridle Hubrain stated, “This rights offering aims to secure future growth drivers for the company and create synergy with pharmaceutical and quasi-drug businesses by strengthening linked investment projects such as discovering medical company investments.” They added, “Starting from the second half of this year, we expect a momentum where both sales and profitability will improve simultaneously.”

Last year, Wooridle Hubrain realized an investment gain of 10 billion KRW by discovering high-potential value stocks such as ‘Aprogen MED’ and ‘BBIBI.’ In particular, the evaluation gain on the 30 billion KRW convertible bonds (CB) of ‘Aprogen MED,’ acquired in October last year, reached about 8.5 billion KRW, exceeding 28% of the investment amount, continuing its successful investment trajectory.

This rights offering is conducted by allocating new shares to existing shareholders proportionally, with 0.2 shares allocated per 1 share held, and any unsubscribed shares will be offered to the general public.

Subscription for existing shareholders will be held from the 7th to the 9th, and subscription for general investors will be accepted on the 13th and 14th. The payment deadline is the 16th, and the new shares are scheduled to be listed on the 29th.