[Special Stock] CJ Bioscience Rises 16% on News of 40 Billion KRW Paid-in Capital Increase

CJ Bioscience surged more than 16% following news that it is planning a third-party allotment capital increase worth 40 billion KRW for new drug development.

As of 11:12 AM on the 10th, CJ Bioscience was trading at 11,050 KRW, up 1,540 KRW (16.19%) from the previous trading day.

This appears to be a positive reaction to the announcement made the previous day regarding the 40 billion KRW third-party allotment capital increase.

CJ Bioscience announced that it will issue 3,952,960 new common shares at 10,119 KRW per share and allocate them to its parent company and major shareholder, CJ CheilJedang, to raise 40 billion KRW for operating funds and other purposes.

CJ CheilJedang stated, "As the major shareholder, we decided on this third-party allotment capital increase to strengthen our responsibilities," adding, "Proactive capital expansion will enhance CJ Bioscience's financial soundness."

They further explained, "This capital increase will enable stable funding for new drug development, accelerating the ongoing clinical trials of CJRB-101 and the development of subsequent pipelines," and "It will also speed up CJ Bioscience's 'AI-based microbiome platform business,' which has secured global competitiveness."