Ecopro HN's Employee Stock Subscription Application 'Sold Out'

Preliminary Demand Survey for Paid-in Capital Increase
Subscription Application Rate Achieves 113%

Exterior view of the headquarters of EcoPro HN located in Ochang, Cheongju, Chungbuk. Photo by EcoPro HN

EcoPro HN announced on the 26th that the subscription rate for the paid-in capital increase targeted at the employee stock ownership association reached 113.2%. The number of shares allocated to the employee stock ownership association accounts for 20% of the total paid-in capital increase scale (5.67 million shares), and subscription demand exceeding this was confirmed.

This demand survey was conducted from the 13th to the 17th of this month, targeting 332 employees. The employees applied for subscription based on the price of 41,800 KRW per share (first issuance price).

The scale of this paid-in capital increase is a total of 237 billion KRW (based on the first issuance price) and will proceed through a general public offering of forfeited shares after allocation to shareholders. Employees will pay the subscription amount on December 4. The issuance price of the new shares for the paid-in capital increase will be finalized on the 29th of this month, and the subscription for existing shareholders will take place on December 4-5. Subsequently, if forfeited shares occur, a general subscription will be conducted.

The high subscription enthusiasm of the employees is interpreted as reflecting expectations for the company's future growth potential. EcoPro HN plans to use the funds raised through this paid-in capital increase to strengthen business competitiveness and promote new businesses.

EcoPro HN plans to actively launch new businesses in the secondary battery and semiconductor materials sectors. To this end, it recently completed the construction of the Chopyeong plant in Jincheon, Chungbuk, and has begun full-scale operations. It will invest 60 billion KRW raised through the paid-in capital increase to start the secondary battery materials business. It will engage in technology development and product production related to electrolyte additives (which improve the stability of secondary batteries), crucibles (containers used in the calcination process of cathode materials), and dopants (additives that enhance the energy density of cathode materials).

For facility investment in the semiconductor materials business, it plans to invest 30 billion KRW. Amid the global expansion of demand for high-performance semiconductors, it is intensifying its semiconductor process materials business. EcoPro HN has completed development of materials for semiconductor front-end processes and packaging process materials and is currently selling some products. It has started developing next-generation semiconductor process materials and is conducting sample tests with customers. Based on the funds raised this time, EcoPro HN plans to accelerate sample testing and the establishment of a semi-mass production line.

Currently, EcoPro has an integrated production system covering secondary battery raw materials including lithium, precursors, cathode materials manufacturing, and used battery recycling. When EcoPro HN manufactures cathode materials and electrolyte additives, most of the raw materials required for the cathode material process can be supplied internally within the group, which is expected to enhance supply stability and strengthen quality control.