1. Oncocross’s CB Issuance: What Happened?
Oncocross announced on July 21, 2025, the issuance of ₩12.5 billion in convertible bonds (CBs) through a private placement. The conversion price is set at ₩11,436, with a minimum adjusted price of ₩8,006. The CBs carry a 0% coupon rate and a 2% maturity rate, with payment due on July 25, 2025.
2. Why the CB Issuance?
Oncocross, a biotech company specializing in AI-powered drug discovery platforms, has been experiencing net losses due to continuous R&D investments. The funds raised through this CB issuance will be used to strengthen R&D activities, accelerate drug development, and expand business operations. Given the current financial situation, securing external funding is crucial.
3. Impact on Stock Price?
- Positive Impacts: Increased R&D investment, accelerated drug development → enhanced growth potential. Increased market confidence due to institutional investor participation. Potential for short-term stock price increase.
- Negative Impacts: Potential stock dilution due to increased number of shares upon conversion. Increased financial burden from interest payments. Risk of stock price decline if R&D results are disappointing.
4. What Should Investors Do?
Oncocross’s CB issuance presents both opportunities and risks. Before making any investment decisions, investors should carefully analyze the current stock price, the planned use of funds from the CB issuance, the company’s R&D pipeline, competitor trends, and macroeconomic indicators. Consult with financial professionals and make informed decisions based on your individual investment goals and risk tolerance.