Lotte Biologics is carrying out a rights issue worth 255.3 billion won to build Plant No. 1 at its Songdo Bio Campus. With funding that Lotte Group has poured into Lotte Biologics through March this year reaching 728.1 billion won, the group's total bio investment will approach 1 trillion won following the new offering.
Lotte Biologics held a board meeting Friday and decided on a rights offering to existing shareholders worth 255.395 billion won, the company said in a regulatory filing.
The offering will issue 4.209 million common shares. The planned issue price is 5,000 won per share, with the final price to be determined after an evaluation by an outside appraisal agency. The record date for new share allocation is set for the 20th, while subscription and payment will take place on Aug. 19.
The funds raised will be used entirely for facility costs. In its filing, the company stated the purpose of the funds as construction of Plant No. 1 at the Songdo Bio Campus. Lotte Biologics is expanding its CDMO business based on its Syracuse plant in the United States, while developing the Songdo Bio Campus as a future growth hub.
According to the filing, whether existing shareholders Lotte Corporation, Lotte Holdings and Hotel Lotte will participate in the rights issue will be finalized through a future board meeting. Lotte Corporation previously provided a total of 728.1 billion won to Lotte Biologics through March this year for purposes including rights issues.
