[Edaily Reporter NA EUN-KYUNG ] L&C BIO(290650)announced on the 3rd that it is proceeding with a rights offering followed by a public offering of unsubscribed shares to expand its extracellular matrix (ECM) platform business and establish a global production system.

The company plans to raise up to approximately 140.6 billion won through this capital increase, based on the planned issue price. Of the funds raised, approximately 105 billion won will be invested in the construction of a global integrated production hub in Dongtan, Hwaseong, Gyeonggi Province; approximately 20.6 billion won will be used for working capital; and approximately 15 billion won will be used to repay convertible bonds (CBs).

This investment is an extension of the company’s ongoing plan to build production infrastructure. L&C BIO secured a site in Dongtan Techno Valley in 2023 and has since completed the design and permitting processes. The company plans to begin full-scale investment in production facilities and equipment based on the secured site.

The new production facility will feature an integrated production system that complies with both Good Tissue Practice (GTP) standards for the production of human tissue grafts and Good Manufacturing Practice (GMP) standards for the production of human tissue-based medical devices. Through this, the company intends to expand production capacity for existing products such as “Re2O” and “MegaDerm” and lay the groundwork for the commercialization of its pipeline of future products.

By introducing smart factory technology and automated equipment, the company also plans to enhance productivity and quality control efficiency, while securing the production capacity needed to expand into overseas markets.

The company explained that proactively securing production capacity is crucial when considering entry into global markets. The Dongtan production hub is expected to serve not only as a base for expanding domestic production but also as a production facility for supplying global markets such as the U.S. and Europe.

L&C BIO reported consolidated revenue of 30.3 billion won and operating profit of 6.0 billion won for the first quarter of this year. The company explained that expanded sales of its ECM platform products and improvements in its product mix contributed to this growth in performance.

The company is also pursuing measures to enhance shareholder value. Following the paid-in capital increase, the company plans to conduct a 1-for-1 stock split, allocating one new share for every existing common share, and will grant rights to the stock split for the new shares issued through the paid-in capital increase as well. It plans to cancel all convertible bonds acquired through call options—valued at 15 billion won based on acquisition cost—to reduce concerns regarding potential dilution of equity and overhang.

An L&C BIO official stated, “This rights offering is an investment aimed at supporting the growth of our ECM platform business and securing global production capabilities,” adding, “Based on our integrated production hub in Dongtan, we will enhance our production capacity and quality competitiveness and accelerate our expansion into global markets.”