[Edaily Reporter KIM SAE-MI ] Voronoi, Inc.(310210)is issuing 52.7 billion won in convertible bonds (CBs) to raise funds for the clinical development of a new global drug.

Voronoi, Inc. announced on the 13th that it has decided to issue its 5th series of bearer, interest-bearing, unsecured private placement convertible bonds (CBs) worth 52.7 billion won to secure working capital.

The coupon rate for this CB is 0%, and the maturity rate is 2% per annum. The payment date is the 23rd of this month, and the maturity date is November 23, 2031. If held until maturity, the principal will be repaid in a lump sum at 110.4% of the principal amount.

The conversion price has been set at 111,510 won per share. If the entire amount is converted into stock, 472,603 new common shares will be issued. This represents 2.48% of the total number of outstanding shares. The conversion period runs from November 23 of next year through October 23, 2031.

The agreement also includes provisions for adjusting the conversion price (refixing) in the event of a decline in the stock price. The conversion price may be adjusted every seven months from the issuance date, with the minimum adjusted price set at 78,057 won, or 70% of the initial conversion price. Investors may request early redemption every three months starting November 23, 2028—two years after issuance.

Voronoi, Inc. plans to allocate the funds raised from this offering to the global clinical development and research and development of its core new drug candidates. The company intends to use 2.7 billion won this year, 25 billion won next year, and 25 billion won annually starting in 2028 as clinical development and operating funds for the EGFR-targeted anticancer drug “VRN11” and the HER2-targeted anticancer drug “VRN10,” among others.

VRN11 is being developed as a treatment for EGFR-mutated non-small cell lung cancer. Voronoi, Inc. has been conducting development for patient groups who have developed resistance after receiving the existing treatment “Tagrisso” or who have brain metastases. Recently, the company expanded its development scope to include a first-line treatment clinical trial targeting patients with no prior history of anticancer therapy.

VRN10, a targeted therapy for HER2-mutated and HER2-positive solid tumors, aims to enter Phase 1b clinical trials in 2027. Additionally, “VRN07” (ORIC-114), a treatment for EGFR/HER2 exon 20 insertion-mutated non-small cell lung cancer previously licensed to U.S.-based Oric Pharmaceuticals, is scheduled to begin global Phase 3 clinical trials next year.

The issuance of these convertible bonds is also expected to increase the potential burden of stock dilution. Voronoi, Inc.’s outstanding balance of convertible bonds (CBs) and exchangeable bonds (EBs) totals 38.8 billion won. Including this issuance, the outstanding balance of equity-linked bonds will increase to 91.5 billion won. According to the disclosure, the total number of shares convertible or exchangeable is 798,677, representing 4.29% of the total number of outstanding shares.

Voronoi, Inc. official stated, “We would like to thank the institutional investors who participated in this investment, placing their trust in the company’s R&D capabilities and the growth potential of our core pipeline despite the challenging capital market environment,” adding, “We will continue to enhance our corporate value through sustained R&D achievements and the expansion of global business development opportunities.”