Amicogen Accelerates Efforts to Raise Funds for Early Redemption of Convertible Bonds Amid Rights Offering 추진

1st Round CB Early Redemption Fundraising Through Capital Increase
Expecting Significant Performance Improvement from Next Year... Promoting Efficacy of Individually Recognized Raw Materials

Amicogen, aiming to raise large-scale funds through a rights offering, has actively engaged in promoting the company. If it fails to secure repayment funds for the '1st Private Convertible Bond (CB)' whose early redemption exercise period arrives next month, liquidity issues may arise. It is expected to raise the planned funds if the current stock price level is maintained during the subscription period for existing shareholders from the 4th to the 5th of next month.

According to the Financial Supervisory Service's electronic disclosure system, Amicogen plans to raise 70.3 billion KRW by issuing 7.7 million new shares to existing shareholders. The issue price of the new shares is 9,130 KRW. Amicogen closed at 12,540 KRW the previous day, about 37% higher than the planned issue price.

Since Shin Yong-cheol, the chairman of the board and largest shareholder, announced that he would subscribe to only about 30% of the allocated shares, the participation rate of investors who purchased subscription rights from existing shareholders is also important. Chairman Shin sold part of his subscription rights at 1,726 KRW per share, securing about 1.47 billion KRW. Investors who purchased the subscription rights effectively acquire new shares at 10,856 KRW, adding the issue price of 9,130 KRW. Assuming the current stock price level is maintained until the listing date of the new shares, the expected return is 15.5%. However, there is a possibility that the stock price may fall due to a large volume of sell orders on the listing day.

Amicogen has recently been releasing positive news to increase subscription rates. The day before, Amicogen announced that a paper on the efficacy of 'Pinitol,' an individually recognized raw material, was published in an SCI-level international academic journal. A research team from Kyung Hee University College of Pharmacy confirmed that administering Pinitol to ovariectomized mice improved symptoms such as hot flashes and depression associated with postmenopausal syndrome. The uterine size did not increase in the Pinitol intake group, indicating no hormonal side effects.

On the 28th, Amicogen disclosed the efficacy of enzyme-hydrolyzed chitosan. It introduced that it confirmed the infection prevention effect and virus elimination effect against the recently prevalent Influenza A virus. An Amicogen official expressed expectations that "chitosan can be used not only as a raw material for health functional foods but also as a treatment for COVID-19 and influenza viruses."

On the 23rd, it was reported that a paper proving the height growth effect of 'Low Molecular Weight Collagen Peptide AG' was published in an SCI journal. Amicogen claimed that when its collagen was administered, bone length increased by 11.5% and growth plate length by 14.8% compared to the control group. Amicogen also emphasized the commercial viability when developing its individually recognized functional materials into health functional foods.

Amicogen plans to use 20.3 billion KRW of the funds raised through the new share issuance for facility investment and 50 billion KRW to repay debts. Securing repayment funds for the 1st tranche CB is particularly urgent.

As of the third quarter this year on a consolidated basis, total borrowings amounted to 179.3 billion KRW, an increase of 36.7 billion KRW compared to the end of last year. Long-term liquidity liabilities and short-term borrowings account for 118.1 billion KRW, about 65.9% of total borrowings. The debt ratio is 165.2%, and the debt dependency ratio is 38.9%.

Previously, Amicogen issued the '1st Private Convertible Bond' in June 2021, raising 50 billion KRW. The first early redemption request date for the convertible bond is December 29. The conversion price is 29,087 KRW, higher than the current stock price. Amid deteriorating investment sentiment in the bio sector in the second half of last year and recording large losses, Amicogen's stock price fell nearly 30% over one year. As the stock price declined, the possibility of early redemption rather than conversion to common stock increased.

Amicogen expects that once the planned funds are secured through the capital increase, the pace of performance improvement will accelerate from next year. Amicogen recorded its highest-ever sales of 120.9 billion KRW on a cumulative basis for the third quarter, a 20% increase compared to the same period last year. Cumulative operating profit turned positive at 1.9 billion KRW compared to the same period last year. As the antibiotic market grows, sales of pharmaceutical special enzymes and DX technology fees increased. Sales of pharmaceutical special enzymes in the third quarter rose 48% year-on-year. DX technology fees increased more than threefold. Since DX technology fees incur no production costs, they significantly improve profitability.

Amicogen CEO Park Cheol said, "Along with the improvement in the core enzyme business division's performance, sales of healthcare materials are also increasing," adding, "In the fourth quarter of this year, we plan to secure new growth engines through the completion of a new plant and expansion of production capacity for existing products."