Loa&Co Group Completes Merger of Nexton Bioscience and Nexton Bio

On July 4, Loa&Co Group announced that it had successfully completed a small-scale, non-capital-increase absorption merger with its subsidiary, Nexton Bio, as of July 3. The merger was carried out as part of a business structure improvement initiative aimed at maximizing synergy through cost reduction and enhanced management efficiency. The company stated, "As of the completion date of the merger, Nexton Bio has been dissolved, and there will be no suspension period for stock trading."

Nexton Bio was a wholly owned subsidiary of Nexton Bioscience, established in April 2021. The company has strengthened its competitiveness through strategic investments in next-generation bio-healthcare and IT-digital transformation sectors. A company representative explained, "With this merger, we can simplify our cost structure and operate resources more efficiently with existing investments such as Cha Healthcare, Losvivo, and Clush, thereby further enhancing our corporate competitiveness."

The investment in Cha Healthcare was made following an investment proposal from Loa&Co Group Chairman Oh Sungjun. Through the "Daishin-Y2HC New Technology Investment Association No.1" in July 2023, affiliate companies EV Advanced Materials invested KRW 7 billion, Mirae Industry invested KRW 13 billion, and Nexton Bio invested KRW 12 billion, for a total strategic investment of KRW 32 billion in Cha Healthcare.

Cha Healthcare aims to strengthen its position in the global market through a global medical network spanning seven countries, including the United States, Australia, Singapore, and Japan. Of the KRW 151.6 billion raised by CHA Biotech through a paid-in capital increase, KRW 5 billion will be used by Cha Healthcare for the construction (KRW 4 billion) and operation (KRW 1 billion) of a new hospital ward at CHA Hollywood Medical Center, LP., located in Hollywood, United States. The company is preparing for an initial public offering (IPO) in 2026.

Meanwhile, on April 1, the company announced in its Compliance Management Declaration that it would adopt sustainable management and ESG management as its behavioral standards. Based on this, the company plans to establish a transparent governance structure and fulfill its environmental and social responsibilities.