Cellivery Announces Bonus Share Issue to Enhance Shareholder Value

[Asia Economy Reporter Hyungsoo Park] Cellivery has decided on a 100% bonus issue to enhance shareholder value.

Cellivery announced that at the board meeting held on the 11th, it resolved a bonus issue allocating one new share for every one existing share. The record date for the new share allocation is set for the 26th of this month, and the listing date is scheduled for the 12th of next month. After the bonus issue, Cellivery's total number of issued shares will increase to 36,103,044 shares.

The Head of Cellivery's Corporate Planning Division explained, "There was some delay in progressing our core new drug development projects," adding, "The stock price has significantly declined due to overlapping adverse conditions such as the global economic recession caused by COVID-19 and inflation concerns."

He continued, "This decision is a proactive response to demands for enhancing shareholder value," and stated, "The global clinical development of the immune inflammation treatment new drug iCP-NI, which can respond to COVID-19 and all community infectious diseases, as well as the licensing contract for the TSDT platform technology, are becoming more visible."

The Head of Corporate Planning emphasized, "We will do our utmost to successfully advance the rapid clinical development of our core pipeline and the licensing contract for the TSDT platform technology, ensuring a strong rebound."

CEO Daewoong Cho exercised the call option as promised at the last shareholders' meeting. He explained that this was a practice of the belief that "maintaining trust with shareholders holds greater value," even at the expense of personal loss. He stressed that the bonus issue demonstrates the company's firm commitment to successfully advancing its business.

Cellivery's proprietary TSDT platform technology enables the delivery of new drug substances into cells and tissues. It is an innovative technology that solves the problem of difficulty in delivering new drug substances into diseased and damaged cells and tissue lesions. The technology is currently being evaluated by overseas technology assessment agencies. The infectious disease treatment new drug iCP-NI, in injectable form (IV), is preparing to enter clinical trials with the U.S. FDA and the European EMA. The toxicity test for the inhalation form (IH) conducted in Japan has also been completed, proving non-toxicity, and preparations for clinical trials in Korea and the U.S. are underway.

The Head of Clinical Development at Cellivery stated, "Approval for iCP-NI's Phase 1 clinical trial in Europe and the schedule for the U.S. Phase 1 trial have been significantly delayed compared to initial expectations," but added, "We are currently awaiting final results, and it is possible to achieve the goal of completing Phase 1 and entering Phase 2 clinical trials in Europe and the U.S. this year."

Based on the results of Phase 1 clinical trials, an expansion of indications is expected. This year, clinical trials for injectable treatments for infectious diseases including COVID-19 will be conducted in Europe and the U.S. for Phase 1/2, and Phase 1 clinical trials for inhalation treatments are planned.

Cellivery is also reportedly accelerating licensing negotiations for the TSDT platform technology. Following close consultations with a global pharmaceutical company counterpart at the BIO International Conference held in San Diego, and through technical and strategic evaluations by the Korea-U.S. joint legal negotiation team in New York, licensing contracts with the counterpart pharmaceutical company are underway. The Head of Business Development at Cellivery said, "Although we cannot disclose detailed information, we recently met with the head of the rare genetic disease division of the counterpart pharmaceutical company in the U.S. and shared mutual understanding regarding licensing." He added, "We are preparing negotiation strategies including deal size and structure in New York."