Genomictree said that its U.S. subsidiary, Promis Diagnostics, has attracted a convertible note investment worth $10.8 million from KB Investment and Solidus.
A convertible note is an open convertible bond that receives investment first and determines the conversion price when performance is achieved.
The investment is similar to convertible bonds (CBs) in that the investment can be converted from bonds to equities. However, the difference is that instead of setting a specific conversion price at the time of issuance, the conversion price is determined when the company shows a successful performance.
With the additional investment, the Korean company has now secured an investment of $40.8 million for its U.S. subsidiary. Genomictree is a company specializing in the biomarker-based diagnosis of in vitro cancer.
“Existing institutional investors, who have long-standing relationships with the company, have decided to invest directly in our U.S. subsidiary,” a company official said. “The investment is meaningful as it helps institutional investors contribute to a successful U.S. clinical trial and increase our corporate value."
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