ST Pharm has successfully raised $76 million (100 billion won) through the issuance of convertible bonds (CB). The proceeds from this issuance, totaling $60 million (80 billion won), will be directed towards facility funds, while the remaining $16 million (20 billion won) will be allocated for operational purposes. This marks the second instance of ST Pharm utilizing the CB strategy, following the initial issuance in late 2020 that garnered $83 million (110 billion won). Notably, both this year's and the prior issuance featured zero-interest rates (0%), reflecting the positive outlook of investors regarding ST Pharm's prospective growth trajectory and their confidence in the potential for stock price appreciation.

On August 9th, ST Pharm made an official announcement confirming the successful completion of the initial payment for the second round of CBs, amounting to $76 million (100 billion won). The company's board convened on August 7th to deliberate on the issuance of these CBs, which have exclusively garnered investment from institutional sources. Distinguished participants in this investment round include Lyfe Captial Fund IV (Dragon), L.P., Korea Investment & Securities, Shinhan Capital, Lindeman Asia Investment Corp., Hi Investment & Securities, Samsung Securities, Kiwoom Securities, KB Securities, and 19 other institutional investors. Remarkably, the coupon rate and Yield to Maturity (YTM) for these CBs are both set at 0%.

The duration of a convertible bond associated with the second round of CBs spans from the issuance date, August 9th, 2024, to July 9th, 2028. Each share's conversion price is stipulated at $60.24 (79,648 won). Given the absence of interest on these CBs, investors are seemingly contemplating the potential for future profit through the anticipated appreciation of ST Pharm's stock, as these instruments do not offer direct yield akin to conventional bonds. Notably, on August 9th, ST Pharm's closing stock price surpassed the conversion price, reaching $62.18 (82,200 won) per share. Consequently, investors stand to reap profits should ST Pharm's stock price exceed the conversion price after the one-year waiting period for CB to become effective. However, this particular CB issuance entails a call option (put option) with a valuation of $22.7 million (300 billion won).

ST Pharm intends to allocate $60.5 million (80 billion won) from the recent $75.7 million (100 billion won) fundraising effort towards augmenting production capacities for Oligonucleotide. The residual $15.2 million (20 billion won) will be earmarked for procuring raw materials and financing research and development (R&D) initiatives linked to mRNA advancement.

In a parallel development, ST Pharm executed the first round of CB issuance worth $83.2 million (110 billion won) in December 2020. In alignment with the zero-interest principle, both coupon rate and YTM for these CBs remained at 0%. Noteworthy contributors included the 'IBK-C JN Biotechnology Business Investment Association', responsible for $47.2 million (62.5 billion won), and the 'NH-Synergy IB Bio Technology Business Investment Association', which accounted for $35.9 million (47.5 billion won). At the time of the initial issuance, it was articulated that a substantial portion of the capital, specifically $68 million (90 billion won), would be channeled towards facility expansions for production and mRNA capabilities.

For the first round of CBs, conversion rights were made exercisable starting December 11th, 2021. By year-end, a sum of $11.3 million (15 billion won) worth of conversion rights had been exercised. The initial conversion price per share was initially set at (98,183 won), later adjusted to (79,218 won) in response to market fluctuations. Remarkably, on December 29th, 2021, the day of conversion rights exercise, ST Pharm's closing stock price had ascended to (142,700 won).