The stock price of the advanced cell gene therapy platform development corporation AbClon is weak in early trading on the 12th. This is interpreted as a decline in investor sentiment due to concerns about equity dilution following the news that Chong Kun Dang has become the second-largest shareholder through a third-party allocation of new shares.
As of 9:30 a.m. on that day, AbClon is trading at 9,230 won, down 2,040 won (18.10%) compared to the previous trading day.
AbClon announced on the 9th that it has decided to conduct a third-party allocation of new shares worth 12.2 billion won after the close of regular trading. The target is Chong Kun Dang, which plans to increase its stake by 1.4 million shares at 8,723 won per share.
Chong Kun Dang will participate as a strategic investor (SI) in this AbClon capital increase and has agreed to pay the funds by the 19th. After the capital increase, Chong Kun Dang's equity will be 7.33%, making it the second-largest shareholder, following founder Lee Jong-seo and affiliates (13.06%).
AbClon has decided to invest all of the funds into clinical and research and development expenses. This year, it plans to spend 5.2 billion won, 6 billion won next year, and the remaining amount is scheduled for use after 2027.