Abion announced on the 14th that it has deleted the refixing (conversion price adjustment) clause through an agreement with holders of the 5th convertible bonds (CB). This has eliminated the risk of derivative transaction losses due to future stock price fluctuations.
An Abion representative said, "This agreement was reached based on confidence in the competitiveness of our pipeline," adding, "We will continue to consider various measures to enhance financial stability."
The Korean International Financial Reporting Standards (K-IFRS) recognize the fair value of financial instruments differently depending on stock price fluctuations. When the stock price rises, transaction losses occur, and when it falls, valuation gains are reflected. Abion also incurred derivative transaction losses of 9.1 billion KRW due to stock price increases after issuing the CB.
The company explained, "This is merely a transaction loss on the financial statements and does not represent actual cash outflow or net loss," emphasizing, "New drug development is progressing very smoothly and is completely unrelated to the company's operating environment."
It added, "The 9.1 billion KRW derivative transaction loss corresponds to 21% of equity, but since all of the 4th CB has already been converted and the refixing clause of the 5th CB has been deleted, the risk of losses due to future stock price increases has been eliminated," stressing, "We will strive to enhance corporate value based on a stable financial structure and technological competitiveness."
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