Stabilizing Financial Structure and Securing Operating Funds through Paid-in Capital Increase
Healthcare New Business Progressing Smoothly to Secure Cash Cow
[Asia Economy Reporter Kwangho Lee] KainosMed, a new drug company for brain disease treatment, announced on the 6th that it will take active measures to resolve the undervaluation of its stock price.
Recently, Chairman Kisub Lee, who feels responsible for the significant drop in stock price due to various reasons including the worsening economic environment, is reported to have instructed internal employees to accelerate business performance outcomes and actively respond to enhance shareholder value.
Last month, KainosMed successfully completed a 26 billion KRW rights offering without forfeited shares through a paid-in capital increase and public offering, and proceeded with the issuance of new shares. It also fully repaid 17 billion KRW of convertible bonds (CB), improving its financial structure by reducing debt. Operating funds, including costs for ongoing clinical development projects, have also been secured.
Regarding the ongoing ‘KM-819’, Phase 2 clinical trials for Parkinson’s disease treatment are progressing smoothly in the United States. In Korea, patient recruitment has begun for clinical trials as a treatment for multiple system atrophy.
A KainosMed official stated, “Through the paid-in capital increase conducted last month, we secured financial stability and operating funds, accelerating clinical and research projects, and although the business is progressing smoothly, we feel responsible for the decline in corporate value,” adding, “We are actively reviewing various measures including accelerating clinical development, attracting overseas investment for subsidiaries, promoting joint development contracts with foreign pharmaceutical companies, achieving results in the expanded healthcare new business sector to secure cash cows, as well as employee stock purchases.”
He continued, “We will actively respond to and correct some malicious rumors about KainosMed,” emphasizing, “We will also actively engage in business development such as technology transfers and partnerships to meet shareholders’ expectations through successful business outcomes.”
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