Dx&Vx said it succeeded in raising 17.8 billion won ($12.9 million) by issuing convertible bonds (CB).
According to the company, it will use the new fund for operating use and acquiring shares of other corporations. DA 1st Company Limited, a special purpose company, will acquire all CBs.
The maturity of the CB is three years with a conversion price of 5,010 won. The CB is worth 3,552,894 shares, which account for 12.38 percent of the total stock, and can be converted into new shares. DA first can make the conversion request from September next year.
The company stressed that it plans to use the funds to secure tangible and intangible assets for future growth engines by adding new drug pipelines and establishing a production base that meets good manufacturing practice (GMP) standards.
Dx&Vx also plans to use the money to collaborate with leading research institutes and companies that are proving technological prowess in the global market and conduct preclinical and clinical trials with European research institutes and large hospitals.
The company views this investment attraction as a result of the market's positive outlook for the company's future vision.
Dx&Vx's sales in the first half of this year were 13.1 billion won, up 184.8 percent from the same period last year. The company also turned profitable after recording an operating profit of 11 billion won.
"Despite the stock trading suspension and market headwinds such as a rate hike, we have managed to succeed in attracting external investment," a company official said. "The reason seems to be that institutional investors positively evaluated the growth value of the company, which is being reborn through the improvement of management structure and commitment to responsible management, shown by Lim Jong-yoon, the largest shareholder of the company and the CEO of Hanmi Science."
With the new management joining at the end of last year, there has been a remarkable improvement in earnings, he added.