BioBijou to Issue 60 Billion Won in Convertible Bonds, Invest 40 Billion Won in Second Plant Construction

BioBijou will issue 60 billion won in convertible bonds (CBs) and use the proceeds for construction of its second plant and other purposes.

BioBijou disclosed that its board of directors decided on the 10th to issue 60 billion won in privately placed, unregistered, unsecured convertible bonds.

The convertible bonds will have coupon and maturity interest rates of 0%, and will mature on Sept. 18, 2031. The conversion price is 14,000 won per share, and 4,285,714 shares will be issued upon conversion. This represents 22.5% of the total shares outstanding.

The conversion period runs from Sept. 18, 2027, through Aug. 18, 2031. The subscription and payment dates are both the 18th of this month.

Of the 60 billion won in proceeds, 40 billion won will be used for facility investments and 20 billion won for operating expenses. Facility investments are allocated to land acquisition for the second plant (17 billion won), construction costs (8 billion won), machinery and equipment (10 billion won), and GMP certification costs and other expenses (5 billion won).

The company plans to allocate 3 billion won each to research and development costs for new products and merchandise purchases, and 14 billion won to advertising and promotional expenses for branding and marketing.

Bondholders may request early repayment every three months beginning March 18, 2029, 30 months after the issuance date. The issuer may exercise a call option for up to 50% of the total issuance from Sept. 18, 2027, 12 months after the issuance date, through March 18, 2029.

The convertible bonds are being issued through a private placement and are therefore exempt from securities registration statement filing requirements. The investors include securities firms acting as trust businesses and new technology investment partnerships.