NGeneBio's Largest Shareholder to Invest 8 Billion Won; Company Enters Solar Power Business
New shares priced at 1,000 won
8 million shares to be issued
Artificial intelligence (AI) precision diagnostics company NGeneBio is moving to improve its financial structure with an additional investment from its largest shareholder. The strategy is to expand its business portfolio by strengthening existing operations while pursuing a new energy business.
NGeneBio said it held a board meeting on the morning of November 10 and approved a third-party allotment of new shares worth 8 billion won to its largest shareholder, SH Healthcare Investment No. 1 Partnership. The new shares will be issued at 1,000 won each, with a total of 8 million shares planned. The capital increase will be carried out in two installments. The 2 billion won payment due on November 23 will be used to repay debt, while the 6 billion won payment due on April 1, 2027, will be used for operating funds.
On the same day, NGeneBio also resolved to acquire a 100% stake in Solar AM Holdings, a solar power business entity, for 2 billion won. Once the share acquisition is completed on November 23, Solar AM Holdings will become a subsidiary of NGeneBio. Solar AM Holdings focuses on developing solar power projects, engineering, procurement and construction (EPC) for power plants, and operations. NGeneBio plans to first establish a revenue base through project development and EPC, and later consider directly owning and operating power plants.
The company also plans to maintain the growth foundations of its existing businesses. Its precision diagnostics business will increase domestic and overseas sales, focusing on next-generation sequencing (NGS) diagnostic products and genomic analysis software, while its pharmaceutical distribution business will improve efficiency by leveraging its existing distribution network. NGeneBio is also working to improve its financial structure, including by selling its real estate holdings in Seongsu-dong, Seongdong-gu, Seoul, to reduce borrowings.
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“The additional investment by our largest shareholder and investment in a new revenue-generating business are intended to strengthen financial stability and build a sustainable revenue structure,” said Lee Gyeongnam, CEO of NGeneBio. “We will increase corporate value and restore the confidence of shareholders and the market by recovering our financial health and improving profitability.”
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