L&C Bio has successfully raised approximately 144.7 billion KRW (about 108.7 million USD) through a rights offering, with existing shareholders subscribing to over 100% of the shares. The company intends to use the funds to expand production facilities and boost global operations.
On Friday, L&C Bio reported that its rights offering, conducted from Wednesday to Thursday, achieved a 103.92% subscription rate from existing shareholders.
The offering saw subscriptions for 3.845 million shares, surpassing the planned 3.7 million, including oversubscriptions. The total subscription amount reached about 150.35 billion KRW (about 113 million USD), exceeding the target of 144.67 billion KRW (about 108.7 million USD). Consequently, no additional public offering of unsubscribed shares will be necessary.
The company attributes this strong subscription result to shareholders’ confidence in the growth potential of its human tissue-based product, Re2O, as well as expectations for overseas expansion and production infrastructure investments.
L&C Bio’s consolidated revenue for the first half of this year hit 69.1 billion KRW (about 51.9 million USD), an 80.6% increase year-over-year. The company turned a profit with 14.6 billion KRW (about 11 million USD) in operating income, while revenue from human tissue grafts, including Re2O and Megaderm, surged 89.0% to 48.1 billion KRW (about 36.08 million USD).
Re2O is a product that utilizes extracellular matrix (ECM) derived from human tissue. ECM, composed of proteins and biomaterials that support tissue structure around cells, is a crucial component in regenerative medicine and tissue engineering.
The quality of human tissue-based medical products can vary significantly based on raw material properties and processing methods, underscoring the critical importance of advanced production facilities and robust quality management systems.
By integrating production and research and development (R&D) functions, the company can align manufacturing processes and quality control standards from the early stages of product development, driving advancements in production technology.
In global markets, securing regulatory approvals and establishing strong distribution networks are key to expanding product supply. A strategy that combines enhancing production capacity with building local sales foundations is crucial for international growth.
L&C Bio plans to invest about 72.6% of the raised funds, approximately 105 billion KRW (about 78.9 million USD), into its global production and R&D integrated center under construction in Dongtan, Gyeonggi Province. The remaining 24.67 billion KRW (about 18.5 million USD) will go towards operational expenses, including raw material purchases, while 15 billion KRW (about 11.27 million USD) is earmarked for debt repayment.
The Dongtan integrated center will serve as a hub for expanding production capacity of human tissue grafts and related medical devices, while integrating production, quality control, and R&D functions. The company aims to bolster its supply capabilities by expanding its existing Seongnam facilities alongside the Dongtan center investment.
L&C Bio is also making strides in international markets. The company currently exports and sells Re2O in Japan and Singapore, and has secured regulatory approvals in Thailand and Peru. Recently, it obtained import approval in the United Arab Emirates (UAE) and signed an exclusive supply agreement with a U.S. partner.
An L&C Bio spokesperson stated that this successful subscription reflects the shareholders’ trust in the strategy for Re2O’s growth and global expansion. It will strategically deploy the raised capital to enhance the production competitiveness and translate the global business expansion into substantial revenue and profit growth.
The payment date for this rights offering is set for October 22, with the new shares expected to list on November 4. Additionally, the company will conduct a bonus issue, allocating one new share for each existing share. The record date for this allocation is October 27, with the bonus shares scheduled to list on November 12.