[Edaily Reporter Shin Ha-yeon ] L&C Bio ( L&C BIO(290650)), a company specializing in human tissues and human tissue-based medical devices, will secure the funds necessary to establish a global integrated production hub in Dongtan and expand production through a capital increase of up to 140.6 billion won.

According to L&C BIO on the 3rd, the company is proceeding with a rights offering followed by a public offering of unsubscribed shares to support the growth of its ECM (extracellular matrix) platform business and secure a global production base that will sustain the company for at least the next 10 years. Based on the planned issue price, the maximum amount to be raised is approximately 140.6 billion won.

Of the funds raised, approximately 105 billion won will be invested in facilities to build a global integrated production hub in Dongtan Techno Valley, Gyeonggi Province. Approximately 20.6 billion won will be used to secure raw materials and cover operating expenses necessary for production expansion, while the remaining approximately 15 billion won is scheduled to be used to repay convertible bonds (CBs).

The company secured the site in Dongtan Techno Valley in 2023 and has since been proceeding with design and permitting procedures. Through this rights offering, the company plans to fully launch investments in production facilities and automation equipment.

The “L&C Bio Global Integrated Smart Manufacturing and Innovation Center” being developed in Dongtan will incorporate 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 initiative, the company intends to expand production capacity for its existing flagship products, such as MegaDerm and Re2O, and establish a global supply base for follow-up products based on its extracellular matrix (ECM) platform.

Smart factory technology and automated equipment will be introduced into the production process. The plan is to integrate the entire process—from raw material receipt through production, quality inspection, and shipment—to enhance production efficiency and quality consistency, while strengthening cost competitiveness and delivery reliability.

Recent earnings growth driven by increased sales of its flagship products also served as a catalyst for the expansion of production facilities. 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. These figures represent increases of 71% and 917%, respectively, compared to the same period last year, and the first-quarter operating profit exceeded the company’s total operating profit for all of last year.

In addition to the paid-in capital increase, L&C BIO is also proceeding with a 1-for-1 stock split, in which one new share will be allocated for every one common share held. The company plans to grant rights to participate in the bonus issue to holders of new shares issued through the paid-in capital increase. Additionally, the company plans to cancel all convertible bonds—valued at 15 billion won based on acquisition cost—acquired through the exercise of call options, thereby reducing concerns regarding potential dilution of equity and overhang resulting from future conversion volumes.

An L&C BIO official stated, “This rights offering is an investment aimed at supporting the growth of our ECM platform business and securing a stable production base and the capability to respond to the global market,” adding, “We plan to strengthen our production capacity and quality competitiveness by establishing an integrated production base that encompasses both GTP and GMP standards at our Dongtan site.”

The official continued, “As we are fully aware of the burden this capital increase places on shareholders, we will strive to enhance the efficiency and transparency of investment execution and ensure that the funds raised lead to expanded production capacity and a solid foundation for profit generation.” They added, “We will also proceed with a 1-for-1 stock split and the cancellation of convertible bonds to simultaneously pursue growth investments and enhance shareholder value.”