Vuno (338220.KQ) is raising 31.4 billion won ($22.6 million) through a rights offering to improve its financial structure and fund research and development.
The medical artificial intelligence company said on the 28th that it will issue 6.3 million common shares at a planned price of 4,980 won each. Existing shareholders will subscribe first, and any shares they decline will be offered to general investors.
The record date for the new share allocation is October 2. Existing shareholders can subscribe on November 9-10, and any forfeited shares will be offered to the public on November 12-13. The new shares are scheduled to list on November 30.
Vuno plans to use 20 billion won of the proceeds to repay perpetual convertible bonds, improving its financial structure. The remaining 11.4 billion won will go toward operating funds including research and development spending.
The large issuance will inevitably dilute existing shareholders' stakes. The increase in outstanding shares could also weigh on the stock price in the short term.
Vuno will hold a shareholder briefing on the 4th of next month to explain the rationale for the offering and how it plans to use the funds.
