L&C Bio CEO Sells 820,000 Shares in Block Deal to Fund Rights Offering Participation

L&C Bio CEO Lee Hwan-cheol sold more than 820,000 shares in an after-hours transaction, reducing his ownership stake from 25.69% to 22.84%. According to a shareholding report disclosed on the Electronic Disclosure System on the 18th, Lee sold 826,276 common shares in a block deal on September 11 at 48,405 won per share. However, the sale appears to have been intended less as a simple profit-taking transaction than as a means of raising funds to participate in the large-scale rights offering being pursued by L&C Bio. In fact, five days after the sale, on September 16, Lee acquired securities representing subscription rights to 857,817 new shares through the allocation of subscription rights certificates to existing shareholders. The planned issue price is 31,900 won per share.

Rights Offering and Global Smart Factory Strategy

Between late July and early August, L&C Bio announced a rights offering to existing shareholders worth approximately 140 billion won, along with a 1-for-1 bonus issue. The company will issue a total of 3.7 million new shares, and the amount to be raised, reflecting the upward adjustment of the issue price in early September, is approximately 144.6 billion won. Lee is reported to have sold part of his existing stake to secure funds to subscribe for 50% of the new shares allocated to him, as well as to pay taxes and repay a stock-backed loan.

Of the funds raised through the rights offering, approximately 105 billion won will be invested in a global integrated smart manufacturing and innovation center to be built in Dongtan, Gyeonggi Province. The facility is expected to serve as a base for the mass production of extracellular matrix- and human tissue-based medical devices and as a key hub for targeting global markets, including the United States and Europe. L&C Bio management described the project as “a strategic investment to secure technological, production and quality capabilities proactively before demand in global markets explodes.”

Regulatory innovation played a decisive role in L&C Bio’s decision to shift from its original plan to build a plant in the United States to establishing a production base in South Korea. After the National Assembly passed an amendment to the Waste Control Act in June 2026, human-derived discarded fat, which had previously been classified as medical waste and incinerated in its entirety, could be recycled as a raw material for pharmaceuticals and medical devices. Shinhan Securities analyzed that “this regulatory easing will instead act as a high barrier to entry for competitors, making it highly advantageous for L&C Bio.”

ReToO’s Series of Overseas Regulatory Approvals and Global Expansion Road Map

ReToO, L&C Bio’s flagship human-tissue skin booster, is accelerating its global expansion after securing a series of regulatory approvals in overseas markets. On September 14, it received formal approval from Peru’s regulatory authorities, establishing a foothold for entry into the South American market. Two days later, on September 16, it received approval as a Class 4 medical device, the highest risk class, from Thailand’s Food and Drug Administration, paving the way for a full-scale push into the ASEAN market. The company raised its sales target for ReToO this year from 50 billion won to 70 billion won and set a target of exceeding 100 billion won in sales from the single product in 2027. To meet explosive demand, it also plans to increase monthly production from the current level of 80,000 to 90,000 units to more than 150,000 units by the end of the year.

Once the subscription by existing shareholders is completed in mid-October, the influx of substantial funds is expected to further strengthen the company’s financial structure. The 1-for-1 bonus issue, based on a record date in late October, and the cancellation of 15 billion won worth of convertible bonds are expected to help dispel concerns about dilution of shareholder value resulting from the rights offering. Over the longer term, production approval for the plant operated by the Chinese joint venture at the end of the year and entry into the U.S. FDA human tissue market are expected to proceed in sequence. Market attention is focused on whether L&C Bio can emerge as a global regenerative medicine platform company.