LigaChem Biosciences Issues 330 Billion KRW Convertible Preferred Shares via Third-Party Allotment, Diluting Existing Shares by Approximately 6%

LigaChem Biosciences has decided to issue 2,210,313 convertible preferred shares via third-party allotment to raise approximately 330 billion KRW for operating funds.
Each convertible preferred share is priced at 149,300 KRW, and conversion into common shares could dilute existing shares by about 5.97%.
Major allottees include the Korea Development Bank's Advanced Strategic Industry Fund and the largest shareholder PAN ORION Corp. Limited, with a one-year lock-up period.
The proceeds will be used for R&D expenses for ADC and immuno-oncology drugs, phased over 2026 to 2028.
Conversion is available from 2028, and the conversion price can be adjusted downward to a minimum of 119,500 KRW if the market price falls, potentially causing further dilution.
The company holds a call option to repurchase up to 10% of the preferred shares from 24 to 48 months after issuance at the issue price plus 1% annual compound interest.
[AI Summary]LigaChem Biosciences raised 330 billion KRW through convertible preferred shares, but dilution of approximately 6% is inevitable, with risk of additional dilution if conversion price is adjusted downward. The funds will support R&D for core pipelines, contributing to long-term growth. High-credit institutional participation lowers governance risk, but near-term stock price may face pressure.