CreoSG Decides on 30 Billion Won Paid-in Capital Increase... "100% Participation by Major Shareholder, US FDA Phase 2 Clinical Trial in Full Swing"

Creos SG has decided to merge its subsidiary to proactively advance its bio business and is now seeking to secure funds to accelerate the development of its new drug pipeline, including the clinical progress of its AIDS vaccine with the U.S. FDA (Food and Drug Administration). Creos SG announced on the 4th through a public disclosure that it has decided on a paid-in capital increase through a rights offering and a public subscription worth 30 billion KRW. The planned issue price per new share is 732 KRW, with 41 million new shares to be issued.

Creos SG plans to use the funds raised from the paid-in capital increase for the development of its existing new drug pipeline. The world’s first AIDS vaccine, ‘SAV001,’ confirmed a significant antibody response in the U.S. FDA Phase 1 clinical trial and is preparing for Phase 2. Recently, the company signed a clinical sample production contract with the global contract development and manufacturing organization (CDMO) ‘Naobios’ and is currently producing samples after setting up the process.

The largest shareholder of Creos SG will also actively participate in this paid-in capital increase. The largest shareholder, Quro Holdings, and related corporate shareholders plan to participate 100% in the allocation of the paid-in capital increase. The company explained that the largest shareholder’s participation in the capital increase is significant not only for defending management rights but also for publicly declaring its commitment to responsible management.

A representative of Creos SG stated, “With the AIDS vaccine approaching FDA Phase 2 clinical trials and expanding research and development into immuno-oncology using vaccine-related technology, we decided on the paid-in capital increase to generate new drug development results. The capital raising will not only strengthen financial soundness but also accelerate pipeline development as the listed company’s structure has changed to lead new drug development through the subsidiary merger,” emphasizing the point.

He added, “While developing various vaccines with the International Vaccine Institute (IVI), an international organization under the UN, we have recently succeeded in discovering a bivalent mixed vaccine candidate capable of simultaneously preventing Severe Fever with Thrombocytopenia Syndrome (SFTS) and Hemorrhagic Fever with Renal Syndrome (HFRS), the world’s first achievement, and other successes continue. We will focus on commercializing new drugs with the secured R&D funds and promote global technology transfer,” he added.

Creos SG recently approved a proposal at the board meeting to absorb and merge its subsidiary ImmunoVax Bio. Through the merger, the universal vaccine development platform ‘SUV-MAP,’ based on recombinant vesicular stomatitis virus (rVSV) technology, and various new drug pipelines will be internalized. Starting from the merger, Creos SG plans to lead new drug development proactively and collaborate on new drug co-development with domestic and international bio companies.