LigaChem BioSciences is undertaking a total funding round of 500 billion won. The funds secured through the issuance of third-party allotment convertible preferred shares (CPS) and private convertible bonds (CB) will be invested in the research and development (R&D) of new drugs, including antibody-drug conjugates (ADCs) and immuno-oncology agents.

The company announced that it held a board meeting on June 25 and resolved to conduct a 330 billion won third-party allotment paid-in capital increase and issue 1.7 trillion won worth of 6th unregistered unguaranteed private convertible bonds. The combined fundraising amount from both transactions totals 500 billion won.

■ 330 Billion Won Third-Party Allotment Paid-In Capital Increase The paid-in capital increase will be carried out by issuing 2,210,313 convertible preferred shares at 149,300 won per share. The entire proceeds of 329,999,739,000 won will be used as operating funds. If all convertible preferred shares are converted into common shares, the number of common shares issuable will be 2,210,313, representing 5.97% of the total existing issued shares. The conversion claim period runs from July 25, 2028 to June 24, 2036.

■ 170 Billion Won Private Convertible Bond Issuance The convertible bonds will be issued with a total face value of 170 billion won, with both the coupon rate and maturity interest rate set at 0%. The maturity date is July 24, 2036, and the conversion price has been set at 149,300 won per share. Upon conversion, the number of common shares issuable is 1,138,647, corresponding to 3.08% of the total existing issued shares. The conversion claim period runs from July 24, 2028 to June 23, 2036. The CB issuance targets consist of the Korea Development Bank (operator of the Advanced Strategic Industry Fund) for 85 billion won, the largest shareholder PAN ORION Corp. Limited for 42.5 billion won, and a third-party financial investor for 42.5 billion won. The company stated that it will make a corrective disclosure as soon as the selection of the third-party financial investor is finalized.

■ Focused Investment in R&D... Annual Execution Plan The raised funds will be concentrated on new drug R&D. The company plans to use the 170 billion won raised through CBs as operating funds for new drug R&D, including ADCs and immuno-oncology agents. By year, it plans to execute 30 billion won in 2026, 60 billion won in 2027, and 80 billion won from 2028 onward. The 330 billion won secured through the paid-in capital increase will also be utilized as operating funds.

■ Refixing and Call Option Provisions Both the convertible preferred shares and convertible bonds issued this time include a refixing provision that allows adjustment of the conversion price in the event of a decline in the stock price relative to the initial issue price. However, the minimum adjusted price is limited to 119,500 won, which is 80% of the initial conversion price. Additionally, from 24 months to 48 months after issuance, the issuing company or a designated third party may exercise a call option on up to 10% of the total issued amount every three months.