AprilBio Management Change, Issuance of 150 Billion Won Convertible Preferred Shares to TKG Huchems… Dilution of 14.9%

AprilBio entered into a contract on June 24, 2026 to transfer management control from existing controller Cha Sang-hoon to TKG Huchems Co., Ltd.
TKG Huchems will acquire 3,492,189 voting convertible preferred shares at 42,953 won per share, totaling approximately 150 billion won. This represents a 14.9% dilution of outstanding shares, and the issuance price is a 25% premium to the current market price of 34,350 won.
After the new issuance, the board will consist of 3 directors nominated by TKG Huchems and 2 directors nominated by the major shareholder.
TKG Huchems has entered into a joint investment agreement with IMM Asset Management and IMM Scale-up Bio No.1, granting call options, put options, and tag-along rights, leaving room for future equity changes.
TKG Huchems is a stable chemical company with assets of 1,168.2 billion won, equity of 908.3 billion won, and sales of 1,127.7 billion won as of 2025, making it a credible acquirer.
[AI Summary]AprilBio's management change disclosure involves a significant 14.9% dilution, but the premium issuance price and TKG Huchems's solid financials and credibility are positive factors. However, the lack of specific use of proceeds and growth strategy suggests a neutral short-term impact on share price.