NGeneBio Announces 22.4 Billion Won Rights Offering, Diluting Existing Shares by 80.01%

NGeneBio decided to issue 7,150,000 common shares (80.01% of existing shares) via a rights offering with a subsequent public offering. Expected issue price is 3,135 won, raising a total of 22.4 billion won.
Of the proceeds, 17.3 billion won will be used for operating expenses (NGS technology advancement, pharmaceutical distribution purchases, etc.), and 5.1 billion won for repayment of high-interest borrowings (e.g., Sangsangin Plus Savings Bank at 17%).
As of end-Q1 2026, the company had an accumulated deficit of 75.8 billion won, capital impairment ratio of 15.82%, and current ratio of 48.26%, indicating extremely weak financial health. A 3:1 reverse stock split is also in progress.
Even after the capital increase, an additional loss of over 15 billion won in 2026 could trigger a designation as a management issue stock. Actual performance has significantly fallen short of IPO projections.
Outstanding convertible bonds (4th series: 2.4 billion won, 6th series: 25 billion won) pose additional dilution risk upon conversion. The largest shareholder's stake is expected to drop from 21.95% to 17.07%.
Newly listed shares are not subject to lock-up, and if undersubscription occurs, the lead underwriter will acquire the remaining shares at a 20% discount, potentially leading to short-term selling pressure.

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