GeneOne Life Science Raises KRW 15 Billion to Fund U.S. VGXI Plant Operations

GeneOne Life Science will raise KRW 15 billion to fund operations at its U.S. subsidiary’s plant and repay debt.

GeneOne Life Science announced that its board of directors decided on the 4th to conduct a KRW 15 billion third-party allotment paid-in capital increase. The offering will issue 6,224,066 common shares at KRW 2,410 per share.

The proceeds will be used for KRW 13.1 billion in operating funds and KRW 1.9 billion for debt repayment. Of the operating funds, KRW 7 billion will be lent to the U.S.-based contract development and manufacturing organization (CDMO) subsidiary VGXI for plant operating expenses, while KRW 6.1 billion will be used for headquarters operating expenses. The KRW 1.9 billion in debt repayment funds will be used to repay borrowings from SangSangIn Savings Bank.

Revolt Investment Association will be the sole participant in the paid-in capital increase. Once payment is completed, GeneOne Life Science’s largest shareholder will change from Dongban Growth Investment Association No. 1 to Revolt Investment Association, which will hold a 25.51% stake. The allotted new shares will be subject to a one-year lockup.

The payment date for the new shares is Sept. 30, and the scheduled listing date is Oct. 16.