Cellumed announced on the 30th that it has successfully secured 5 billion KRW in initial funding necessary for business diversification, including a secondary battery replaceable battery platform. The company stated that this investment will serve as a turning point, giving new momentum to Cellumed's secondary battery and electric two-wheeler related new businesses.
In particular, starting this year, the government has decided to provide a 60% subsidy for battery replaceable electric two-wheelers, anticipating rapid growth in the related market, which is expected to create synergy with Cellumed's new business. Recently, Cellumed imported samples of upgraded electric two-wheeler models from a global company, which complement the Battery Management System (BMS), and is preparing to apply the replaceable battery platform. The company is strengthening technical cooperation with the said company and accelerating the signing of the main contract.
Through a public disclosure, Cellumed announced on the 30th that it has decided to issue the 26th series of 5 billion KRW in anonymous, unsecured private convertible bonds (CB). The nominal interest rate and maturity interest rate of the CB to be issued are 2% and 5%, respectively, with a conversion price of 5,590 KRW per share. The number of shares to be issued upon conversion is 894,454 shares (2.12% of the total issued shares), and the conversion request period is from April 5, 2024, to March 5, 2026.
Cellumed plans to use the funds raised this time as initial capital for the development of the secondary battery replaceable battery platform business and the establishment of mass production facilities. Specifically, the funds will be used for various outsourcing costs such as ▲ battery and electric two-wheeler permits and approvals ▲ battery cell raw material costs ▲ construction of the replaceable battery platform.
Additionally, Cellumed plans to invest in entering the medical AI robot business and the bio-medical device business. The company aims to strengthen global competitiveness in related businesses by investing in research and development of AI medical robots and software, building patient-customized databases, and conducting clinical research. Furthermore, it plans to expand existing medical device business facilities through equipment and development for mass production of mRNA production enzymes.
A Cellumed representative stated, “Recently, most CB bondholders have exercised their conversion rights and become long-term investors. Most investors met during this investment attraction process expressed expectations for business diversification, including the secondary battery new business.” He added, “We selected investors considering investment conditions and timing of fund execution, and there will be no issues with additional planned fundraising depending on future business progress.”
He continued, “Recently, the government has been strengthening support to curb the expansion of internal combustion engine two-wheelers and promote the spread of electric two-wheelers, so the related market is expected to grow significantly.” He added, “Despite the challenging financial market environment, having succeeded in the first phase of investment attraction, we will accelerate the secondary battery replaceable battery platform new business to secure the domestic market.”
The government plans to provide subsidies for battery replaceable electric two-wheelers starting this year. Battery replaceable two-wheelers can overcome the drawbacks of battery-integrated electric two-wheelers, which have short driving ranges and require long charging times. The battery replaceable model uses a method of swapping charged batteries at battery exchange stations. The Ministry of Environment plans to subsidize 60% of the electric two-wheeler cost if only the vehicle is purchased and the battery sharing service is utilized.
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