Genome & Company floats ₩4.5 billion CBs to develop antibodies for ADCs

Genome & Company said Thursday that it would issue convertible bonds (CBs) totaling 4.5 billion won ($3.26 million). The funds will be used for researching and developing antibodies for novel targeted antibody-drug conjugates (ADCs).

According to the public disclosure, the convertible bonds will be issued to Paratus Newnormal TCB private equity fund and Susung Asset Management. They will subscribe to bonds worth 3 billion won and 1.5 billion won, respectively.

The convertible bonds have a coupon rate of 0 percent and a 3 percent interest rate upon maturity set on July 19, 2029. The principal amount will be redeemed in a lump sum on the maturity date at 115.9274 percent of the electronic registration amount. The bondholders can redeem them early every three months starting July 19, 2026, and receive compounded interest at 3.0 percent annually.

The conversion price is 8,360 won, equivalent to 538,277 shares of the Genome & Company common stock. The conversion period is from July 19, 2025, to June 19, 2029.

Gnome & Company plans to use the proceeds from this convertible bond issue to fund antibody and microbiome research and development for new targeted ADCs.

The company emphasized that it has sufficient liquid resources to support its ongoing growth strategy and that this is a pre-emptive financing. In June, Genome & Company signed a technology transfer agreement with Switzerland-based Debiopharm to develop GENA-111 for ADC drug development.

“We will do our best to secure the necessary funds to execute our R&D and commercialization strategies so that they can proceed smoothly,” Genome & Company CEO Hong Yoo-seok said. “We will continue to develop new drugs with our funds secured from milestones through continuous technology transfer and microbiome commercialization revenue, and build a virtuous cycle for sustainable growth.”

Genome & Company's stock price closed at 9,640 won on Wednesday, up 15.73 percent or 1,310 won from the previous day's closing price.