HiSonic to Proceed with Third-Party Allotment Capital Increase by Major Shareholder... "Strengthening Responsible Management"

HiSonic is strengthening responsible management and enhancing corporate value.

HiSonic announced on the 3rd that it held a board meeting and decided on a third-party allotment paid-in capital increase worth 4 billion KRW. The largest shareholder, HS Holdings (formerly Anno28), is expected to participate solely in this capital increase.

HS Holdings, which became the largest shareholder of HiSonic in 2022, plans to acquire an additional 1,814,058 shares through this capital increase. The shareholding ratio will increase from the existing 18.89% to 24.35%. The issue price per share is 2,205 KRW.

The company stated that the purpose of this capital increase is to strengthen responsible management. It aims to take the lead in responsible management to enhance future corporate value, focusing on the growth potential of the new secondary battery business and stabilizing management control.

HiSonic plans to use the funds raised from this capital increase to improve its financial structure. Of the raised funds, 3 billion KRW will be used to repay by exercising the call option on the 17th series convertible bonds, and the remainder will be used as operating funds.

Park Yongjik, CEO of HiSonic, said, “This capital increase expresses the largest shareholder’s strong will for responsible management, and it is expected that management control will be further strengthened after the payment is completed. This year, we will focus on the secondary battery business as our main business to ensure that our efforts so far bear fruit.”

He added, “We plan to generate sales through actual supply contracts and build a stable financial structure with the funds raised through this capital increase.”