InventageLab Converts CB Investors to Stocks Just Over One Year After Issuance

Stock Price Rise Since June Last Year... Direct Stock Conversion After About One Year
Conversion Price 9,995 Won... "Expected Return Rate 55%"
"15% of Remaining Volume After Conversion"

Investors who invested in Inventage Lab's first tranche of convertible bonds (CB) are now converting them into shares. This is because the stock price has surpassed the conversion price after about a year since the CB issuance. With this stock conversion, CB investors are expected to gain profits of up to 55%.

According to the Financial Supervisory Service's electronic disclosure system on the 5th, Inventage Lab recently announced that the conversion rights for the first tranche of CBs have been exercised. A total of 280,140 shares are scheduled to be listed on the 29th of this month, with a conversion price of 9,995 KRW, amounting to approximately 3.04 billion KRW. The closing price of Inventage Lab on the previous day was 15,470 KRW. If the stock price continues until the conversion point, investors are expected to achieve a return of 54.77%.

Inventage Lab, a biotech company, researches and develops drug delivery system (DDS) platforms based on microfluidics. It holds a pipeline of long-acting injectable drugs that maintain efficacy for 1 to 6 months with a single dose, as well as various improved new drug candidates.

On June 9 last year, Inventage Lab issued the first tranche of CBs worth 15.5 billion KRW. The funds were intended for operating expenses related to the development of long-acting injectables and lipid nanoparticles (LNP). The CBs have a nominal interest rate of 0% and a maturity interest rate of 3.0%. The conversion request period started on the 13th of last month and lasts until May 13, 2028. Upon the conversion request date, the bonds were immediately converted into shares.

At the time Inventage Lab issued the CBs, the stock price hovered between 8,000 and 9,000 KRW. However, from the second half of last year, the stock price surged past 30,000 KRW as the long-acting dementia treatment and obesity treatment drugs under development gained attention. The stock price later declined to 9,400 KRW in April this year. Recently, the stock price surged again following the announcement of preclinical results of an obesity drug co-developed with Yuhan Corporation at the American Diabetes Association (ADA) conference held in the United States. As of June 4, Inventage Lab's stock price has risen 40.13% compared to the end of June.

However, the remaining volume of shares to be issued after the stock conversion is expected to weigh on the stock price. The remaining amount of the first tranche CB corresponds to 1,246,623 shares, which is 14.74% of the total shares (8,455,556 shares).