STCube Changes Major Shareholder to STCube & Company

Third-Party Allocation Paid 13 Billion Won
Nelmastobat Royalty Rate Also Adjusted Upward

The largest shareholder of STCube, a company developing immune checkpoint inhibitors, has changed to STCube & Company. STCube & Company and STCube expressed strong determination and confidence in enhancing corporate value, starting with investment attraction.

On the 25th, STCube announced that its affiliate STCube & Company participated in a third-party allotment paid-in capital increase and paid 13 billion KRW. STCube & Company has become the single largest shareholder of STCube. STCube secured funds for clinical research and development and operations.

STCube & Company is a pharmaceutical R&D company that first developed the anti-BTN1A1 immune checkpoint inhibitor 'Nelmastobat.' It owns the patent rights for Nelmastobat and has been jointly developing Nelmastobat with STCube since October 2019. It became the largest shareholder by participating in STCube's paid-in capital increase with funds secured through its own investment attraction.

As part of efforts to enhance shareholder value of STCube, the success fee payment criteria for Nelmastobat were changed. This was to adjust the revenue structure related to sales royalties in favor of STCube upon the license-out (L/O) of Nelmastobat.

The milestone revenue structure for Nelmastobat is such that the MD Anderson Cancer Center in the U.S., which participated in Nelmastobat's R&D, receives 10%, and the remaining 90% is shared equally between STCube & Company and STCube at 45% each. Regarding sales royalties, there was a difference in distribution ratios based on cumulative sales amounts before the change, but after the contract change, STCube can receive 45% regardless of the cumulative amount.

An STCube representative said, "The royalty contract change for Nelmastobat was a preliminary step conducted to maximize shareholder value of STCube shareholders ahead of future license-out agreements for Nelmastobat," and added, "We continue to hold cooperation discussions with global pharmaceutical companies and major domestic corporations."

He continued, "We are simultaneously pursuing all measures such as improving governance through expanding the largest shareholder's stake, strengthening clinical R&D capabilities, and establishing strategic partnerships that can increase the added value of Nelmastobat to achieve long-term corporate value growth." He explained, "We expect this to have a positive impact on the revaluation of corporate value."

STCube is conducting a paid-in capital increase through a rights offering by issuing 18.5 million new shares. Based on the scheduled issue price of 4,720 KRW, this amounts to approximately 87.3 billion KRW. Biomedical Holdings and STScience, the existing largest shareholders and special related corporations of STCube, plan to participate 100% in this rights offering subscription.

Existing shareholders will be allocated approximately 0.4 shares per one share held. After finalizing the issue price on November 18, subscription for existing shareholders will be conducted over two days from December 21 to 22. General public subscription for any unsubscribed shares after the existing shareholders' subscription will be held on December 26 and 27.

STCube is currently conducting global clinical Phase 1b/2 trials of Nelmastobat combined with paclitaxel for relapsed/refractory extensive-stage small cell lung cancer (ES-SCLC), and investigator-initiated clinical Phase 1b/2 trials of Nelmastobat combined with capecitabine as a third-line or later treatment for metastatic advanced colorectal cancer. It is preparing to participate in ‘SITC 2024 (Society for Immunotherapy of Cancer Annual Meeting)’ in the U.S. this coming November.