Telcon RF Pharmaceutical, Abion Executes Convertible Bonds Worth 15 Billion Won

Telcon RF Pharmaceutical has expanded its stake and improved Abion's financial structure by exercising conversion rights on Abion's convertible bonds (CB).

On the 29th, Telcon RF Pharmaceutical exercised its conversion rights on Abion's 4th series CB worth 15 billion KRW. As a result, Telcon RF Pharmaceutical secured an additional 2,284,843 shares of Abion, increasing its stake from 20.4% to 27.9%.

With this exercise of conversion rights, Abion's debt ratio significantly improved from 1280% to 124%, and total equity increased from 2.7 billion KRW to 16.7 billion KRW. The capital increase also resolved the issue of capital erosion.

A representative from Telcon RF Pharmaceutical stated, "Including this exercise of conversion rights, we plan to convert all remaining 4th series CBs within the first half of the year to help improve Abion's financial structure. We will faithfully serve as a bridge to ensure the successful technology transfer for Abion to become a global pharmaceutical company while guaranteeing its independent management rights."

Last April, Telcon RF Pharmaceutical became the largest shareholder by acquiring a 20.4% stake in Abion through a block deal. At the same time, it acquired 16 billion KRW worth of Abion's 4th series CB and paid 2 billion KRW for the 5th series CB, resolving the overhang issue caused by the maturity of the existing largest shareholder, the ‘ST-Starset Healthcare Fund No.1’.

Meanwhile, Abion is conducting global Phase 2 clinical trials for its hepatocyte growth factor receptor 'c-MET' targeted anticancer drug, Babamekip (ABN401). The clinical results are scheduled to be announced at the American Society of Clinical Oncology (ASCO 2024) conference held in Chicago, USA, on June 1 (local time).

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