1. What Happened? Microdigital Announces ₩16.5B CB Issuance
On July 23, 2025, Microdigital announced the issuance of convertible bonds worth ₩16.5 billion. The conversion price is set at ₩10,214, significantly higher than the current stock price (₩89). The conversion period is from July 31, 2026, to June 30, 2030. Major investors include institutional investors focused on the biotech sector, such as Korea Value Asset Management.
2. Why Issue CBs? Securing Funds and Driving Growth
This CB issuance is a strategic decision to strengthen Microdigital’s financial stability and secure growth momentum. The funds raised will be used for investments in on-site precision diagnostic systems, expansion of R&D, and debt repayment. Positive evaluations from investment institutions regarding Microdigital’s business portfolio, which aligns with the national policy for domestic production of bio components and materials, played a key role in this investment.
3. So, What’s the Impact on Stock Price? Opportunities and Risks Coexist
- Positive Impacts: Improved financial structure, expanded new business investments, secured investor confidence.
- Negative Impacts: Potential stock dilution, increased stock price volatility, short-term debt increase.
While long-term stock price growth is expected due to corporate growth, concerns about short-term stock price volatility and dilution effects coexist. As the current stock price is significantly lower than the conversion price, careful observation of future stock price trends is necessary.
4. What Should Investors Do? Prudent Approach and Continuous Monitoring
Investors should consider various factors, including the success of on-site precision diagnostic systems, improvement in management efficiency, and macroeconomic variables, when making investment decisions. Continuous monitoring of stock price movements and flexible adjustment of investment strategies are crucial. Focusing on long-term growth potential rather than a short-term perspective is recommended.