Hubexel Acquires 45% Stake in Bioorigin... "Accelerating KOSDAQ Transfer Listing"

[Asia Economy Reporter Hyunseok Yoo] Medical device specialist Hubexel announced on the 2nd that it has become the largest shareholder of BioRegen, a bio-material manufacturing specialist company.

On the 26th of last month, the company decided on a paid-in capital increase worth 1.5 billion KRW targeting DT&Investment and Magna Investment, and announced the decision for acquisition of stocks and equity securities of other companies along with the capital increase decision on the 30th of the same month.

BioRegen, established in July 2009, is a manufacturer of neurosurgical and orthopedic medical devices and also produces biomedical materials. It is located in Damyang-gun, Jeollanam-do, and has a GMP (Good Manufacturing Practice) facility covering 1,000 pyeong and manufacturing equipment classified as Grade 4 (medical device equipment with high risk).

It was the first in Korea to develop and produce synthetic bone using 100% β-TCP. It achieved localization and import substitution effects for orthopedic and neurosurgical tissue repair medical devices that had previously depended on imports.

Currently, BioRegen has developed high value-added new products using customized synthetic bone through a 3D printer within its own GMP facility. Based on this, multiple venture capitals (VCs) including Magna Investment, DT&Investment, Wooshin Venture Investment, Shinhan Capital, and Aju IB Investment have invested.

A company official stated, "The needs of Hubexel, which is undergoing a KOSDAQ transfer listing, and BioRegen, which requires domestic and overseas sales, aligned. Discussions for acquisition with VCs who are major shareholders of BioRegen started in March, and the contract was completed on the 29th of last month."

Also, DT&Investment and Magna Investment conducted a paid-in capital increase of 1 billion KRW and 500 million KRW respectively, totaling 1.5 billion KRW for Hubexel. The company explained that this will support the KOSDAQ transfer listing within 2022.

The VCs will not exit but will convert from being the largest shareholders of BioRegen to major shareholders holding about 23% of Hubexel. Hubexel will first acquire 45.27% (1,080,229 shares) of BioRegen to become the largest shareholder. Subsequently, it plans to gradually increase its stake and incorporate BioRegen as a subsidiary.

Due to this acquisition, the stake of T-Life, the largest shareholder of Hubexel, is expected to change from 81.64% to 61.80%. A company official explained, "Following the successful small public offering of 1 billion KRW in January and the recent VC equity investment, we are gradually increasing the shares held by minority shareholders to meet the stock distribution requirements for the KOSDAQ transfer listing."

The company official added, "To enhance synergy after the acquisition, we will additionally register BioRegen’s 1,000-pyeong GMP factory located on Eco Industrial Road, Damyang-eup, Damyang-gun, Jeollanam-do as Hubexel’s second factory. We are preparing for full-scale collaboration, including expanding facilities and considering relocating the headquarters’ research institute to BioRegen."