HiSonic, 23 Billion Won Capital Increase... Investment in Secondary Battery Component Facilities and US Factory

HiSonic is making a large-scale investment to expand its secondary battery business.

HiSonic announced on the 11th that it will proceed with a paid-in capital increase worth 23 billion KRW.

HiSonic explained that, recognizing the progress and growth potential of HiSonic's secondary battery business, SangSangIn Securities and SK Securities will proceed with a shareholder allocation followed by a general public offering of forfeited shares, with the securities firms able to underwrite the full amount. The largest shareholder, HS Holdings, will also participate in subscribing to 30% of the newly allocated shares. It is expected that this will not only enable stable fundraising for facility investment but also secure financial soundness.

Based on the secured funds, HiSonic plans to actively invest in secondary battery component equipment and acquire a local factory in the United States. In line with the 600 billion KRW ESS project schedule over the next eight years in cooperation with global battery companies, the investment aims for mass production by June next year.

As agreed with customers, it is expected that the main contract will be signed within this year after preparing the factory and equipment setup and supplying samples.

HiSonic is expanding its secondary battery component technology competitiveness simultaneously with production facility investment. Based on its know-how in mold design and manufacturing, it has secured ▲ large can deep drawing mold technology, which is key to enlarging prismatic cells ▲ vent malfunction prevention control technology, a core component of prismatic caps ▲ and plasma cleaning technology to prevent foreign substances. The company plans to continue its technology research and development going forward.

A company official explained, "The fundraising is for investing in production facilities necessary for the secondary battery component business, which is our new growth engine and core business," and added, "Once the production infrastructure is established, it is expected to accelerate the expansion of the secondary battery business."

He continued, "Having secured binding orders exceeding 1000 GWh from global battery companies and collaborating on large-scale ESS projects, and having been recognized for our secondary battery component technology and business competitiveness, we expect sales to double next year with the full-scale mass production of secondary battery components."

Through the paid-in capital increase, a total of 9.4 million new shares will be issued at 2,440 KRW per share. The subscription period for existing shareholders is from December 5 to December 6.