Kangstem Biotech is showing weakness in early trading on 11th. Investors appear to be dumping shares due to concerns about adverse effects on stock prices following the announcement of a large-scale capital increase plan the previous day.

As of 9:11 a.m. on that day, Kangstem Biotech is trading at 1,604 won, down 481 won (23.07%) from the previous trading day.

On 10th, Kangstem Biotech announced a plan for a rights offering totaling 38 million shares. This represents a large-scale capital increase amounting to approximately 67.8% of the existing 56 million listed shares. The total funding size amounts to 48.185 billion won.

Kangstem Biotech logo./Kangstem Biotech

Kangstem Biotech noted that the new funding would be used for the research and development (R&D) expenses of osteoarthritis treatment and atopic dermatitis treatment, as well as for adipose stem cells and organoids (mini-organs). However, investors view the large scale of the capital increase and the distribution of all shares to shareholders without tri-party allocation as a negative factor.

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