HLB disclosed on March 4 that its board of directors has approved the issuance of 60 billion won in convertible bonds to domestic private equity funds and others. The primary purpose of this fundraising is to secure operational funds. Although the company currently holds over 65 billion won in cash liquidity and more than 500 billion won in liquid securities, these funds were raised through public offerings and are designated for specific uses according to securities issuance regulations.
HLB, having focused on new drug development, is in the final stage towards new drug approval after 16 years, aiming to ensure uninterrupted company operations even in the face of potential economic crises. The company expects that the funds for large-scale marketing efforts in the United States following drug approval can be sufficiently self-financed by its U.S. subsidiary, Eleva. However, the company plans to utilize a portion of the newly raised funds for initial marketing efforts in the U.S. should any funding disruptions occur.
HLB has been in discussions with numerous investors, both domestically and internationally, for this fundraising. Due to internal processes, some domestic institutional investors were unable to participate in the first round of financing, but discussions for a second round are ongoing. Meanwhile, discussions with major foreign investment institutions are also in progress. HLB reported that these international institutions are interested in investing post-drug approval, regardless of the current stock price or market capitalization.