Immuno-oncology developer STCube is simultaneously conducting a third-party allotment paid-in capital increase worth 13 billion KRW and a shareholder preferential public offering paid-in capital increase worth approximately 75.7 billion KRW as a means to expand capital and improve corporate governance.
On the 26th, STCube announced that it will carry out a third-party allotment paid-in capital increase worth 13 billion KRW targeting STCube & Company. STCube & Company is a special related entity of Biomedical Holdings, the current largest shareholder of STCube. After the payment, the largest shareholder will change to STCube & Company, but there will be no change in actual management control.
At the same time, it resolved to conduct a shareholder preferential public offering paid-in capital increase worth approximately 75.7 billion KRW. The new shares to be issued through the shareholder preferential public offering amount to 18.5 million shares, representing about 39.61% of the total shares. The planned issue price is 4,090 KRW, applying a 30% discount rate. Existing shareholders will be allocated 0.39652222 shares per one share held.
This paid-in capital increase aims to completely resolve the uncertainties caused by the designation as a management item. The funds will be used for operating expenses, specifically for clinical and research and development costs, rather than debt repayment or acquisition of securities of other companies.
An STCube official stated, “Conducting the third-party allotment and shareholder preferential public offering simultaneously is a measure to increase the largest shareholder’s stake and protect shareholder value,” adding, “In addition to the third-party allotment, Biomedical Holdings, the current largest shareholder, and its special related party STScience plan to subscribe 100% of the new shares allocated in the shareholder preferential public offering.”
He continued, “Once this paid-in capital increase is completed, it is expected to not only exit the management item designation but also improve corporate governance and establish a more stable cash flow and research and development structure.”
Furthermore, the company reaffirmed that its top business strategy is the technology transfer of its core pipeline, Nelmastobat.
Jung Hyunjin, CEO of STCube, emphasized, “Based on the new drug value of Nelmastobat confirmed in the early results of ongoing clinical trials, technology transfer negotiations are progressing more actively,” and added, “When we reach a point where we can show all these processes, we expect the market to re-evaluate the corporate value.”
He also stated, “This paid-in capital increase is a carefully made decision to increase the company’s value in the long term at a time when the company has stronger confidence in its future growth than ever before, so we ask for shareholders’ understanding and participation,” and promised, “We will repay the trust and expectations of our shareholders with greater success.”
STCube is currently conducting clinical trials 1b/2 for extended-stage small cell lung cancer and investigator-initiated clinical trials 1b/2 for metastatic colorectal cancer using the anti-BTN1A1 immune checkpoint inhibitor Nelmastobat in combination with chemotherapy. Last month, dosing for clinical phase 1b was completed for both indications, and phase 2 has begun. For the colorectal cancer investigator-initiated trial, early results of phase 1b are expected to be announced soon.
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