Konnec Secures Majority Shareholder Status with Additional 4 Billion KRW Investment in Medicox

[Asia Economy Reporter Jang Hyowon] Fintech specialist company Kanak (KANAK) is becoming the largest shareholder of KOSDAQ-listed company Medicox.

Medicox announced on the 13th that it decided to conduct a third-party allotment paid-in capital increase worth 4 billion KRW targeting Kanak. The new share issuance price is 504 KRW, and the payment date is July 13. Once the capital increase payment procedure is completed, Kanak will acquire approximately 7.93 million new shares, securing a total stake of 12.98% and becoming the largest shareholder.

In February, Kanak invested 11.2 billion KRW to acquire a 5.99% stake in Medicox, becoming the second-largest shareholder and acquiring management rights.

Kanak, which is about to secure the largest shareholder status in Medicox, plans to further improve the management decision-making system, which had been somewhat limited under the existing second-largest shareholder management structure. Additionally, as it has advanced the schedule for additional investment to minimize the negative impact from Medicox’s recent capital reduction, it intends to actively work on improving the financial structure.

Odaihwan, CEO of Medicox, stated, "The existing shipbuilding equipment business division continues to maintain solid performance based on long-standing experience and will be further specialized in the future. The new bio business division plans aggressive business diversification through medical cannabis, etc. Also, Kanak, the parent company that will become the largest shareholder, is discussing multifaceted business cooperation with Medicox in the fintech bio business division. Therefore, with an improved decision-making system and management efficiency, we expect to maximize synergy going forward."

Kanak operates its fintech payment industry as its core business, starting with the ePAYDAY payment solution and providing customized services based on data analysis. Recently, it has also been advancing healthcare services using metaverse technology and engaging in the NFT financial platform business.

According to the company, Kanak’s payment gateway (PG) service transaction volume is expected to reach about 1 trillion KRW this year, with projected sales reaching 23 billion KRW, nearly a 300% increase compared to the previous year. Going forward, Kanak plans to acquire a distribution platform targeting collectors and build a hospital and clinic product distribution platform called ‘Uiryomall.’ Since stable performance continues through hospital and clinic payment agency services, Kanak also expects additional sales growth through new businesses.