Syntekabio Considers Expanding Fundraising Beyond KRW 2 Billion Third-Party Allotment to Over KRW 3 Billion Plus Alpha, Eyes Public Offering

AI-driven drug development company Syntekabio (226330) is reviewing its initial plan for a third-party allotment capital increase of KRW 2 billion, with a view to expanding the fundraising amount to over KRW 3 billion. As the company has further detailed its business plan for candidate discovery and the pre-IND (Investigational New Drug) submission process, it is discussing with securities companies the possibility of shifting the fundraising structure to a public offering that allows participation from general investors.

On September 4, Syntekabio announced a change in the payment date for its initially planned small-scale third-party allotment capital increase of KRW 2 billion, moving it from September 8 to November 17. The company explained that this is not simply a delay of the original fundraising schedule, but rather the result of a reassessment of the required capital and fundraising method after its pre-IND candidate asset business has accelerated.

According to Syntekabio's internal business plan, the company is currently conducting candidate discovery and stage-by-stage validation for approximately 18 biobetter targets, around 21 improved new drug (IMD, small molecule) targets, and about 34 drug repurposing (DR) targets.

In the small molecule improved new drug sector, Syntekabio has completed the synthesis of 3,808 derivatives compared to the control group, and in drug repurposing, the company has secured 34 hit compounds. Based on these achievements, it aims to secure more than 10 biobetter, at least 3 improved new drug candidates, and at least 5 drug repurposing candidates, totaling 18 or more pre-IND stage candidate compounds by the end of this year.

It appears that the company determined that the originally planned KRW 2 billion would not be sufficient to cover not only additional validation and optimization of candidates, but also entry into the pre-IND stage and preparations for technology transfer. Accordingly, Syntekabio is considering expanding the fundraising scale to "KRW 3 billion plus alpha" beyond the original plan.

The company is also prioritizing discussions on shifting the fundraising method from a third-party allotment to a public offering. While a third-party allotment targets specific investors, a public offering would allow a wider range of general investors to participate.

Syntekabio stated that, should its candidates lead to substantial business outcomes such as technology transfers or joint development in the future, it intends to prioritize a structure that shares the resulting increase in corporate value not just with specific investors, but with overall market participants.

Accordingly, Syntekabio is adjusting the payment date for the existing small-scale third-party allotment to November 17, while also discussing, ahead of that date, conducting a public offering of KRW 3 billion plus alpha with securities companies. The company plans to select the lead manager this week and begin preparing the securities registration statement with the goal of initiating specific capital increase procedures.

Alongside fundraising, Syntekabio is also continuing efforts toward management normalization. Since being designated as an investment warning stock after its semi-annual review report, the company has been keeping the market informed of key management developments through public disclosures and investor relations (IR) events, emphasizing its efforts to turn its AI drug development achievements into tangible assets—namely, pre-IND candidates and technology transfers.

The company explained that this change in fundraising strategy is not simply aimed at securing short-term working capital, but rather at stably sourcing funds required for candidate validation and commercialization while expanding opportunities for general investor participation.

A Syntekabio official stated, "We are well aware that the recent change in the payment date for the third-party allotment small-scale offering may have caused some concerns in the market about the fundraising schedule," emphasizing, "This change is not simply a delay of the original KRW 2 billion fundraising, but the result of a reassessment of the required amount and fundraising method as the pre-IND business plan becomes more detailed."

The official continued, "Currently, we are prioritizing a public offering of at least KRW 3 billion plus alpha, and are working with securities firms on the specific structure. The secured funds will be used to create tangible business outcomes, including candidate validation, pre-IND entry, and technology transfer. We will also keep the market transparently informed about the fundraising and business progress, making every effort to achieve management normalization and restore trust."

Rather than simply postponing a third-party allotment capital increase of KRW 2 billion, Syntekabio plans to expand the fundraising scale to over KRW 3 billion and consider a public offering, thereby more robustly securing the financial resources needed for pre-IND candidate development and technology transfer preparation.

This content was produced with the assistance of AI translation services.