Kolmar Holdings, the parent company of Kolmar Korea, is strategically acquiring control of contract research organization (CRO) Woojung Bio through a convertible bond investment. This move signifies Kolmar’s dedication to expanding its presence and expertise in the rapidly evolving biotechnology research sector.
According to a recent regulatory announcement, Woojung Bio will issue 35 billion won ($24 million USD) in convertible bonds to Kolmar Holdings via a third-party allocation. These bonds, maturing on March 3, 2030, are convertible at a rate of 2,325 won per share. Full conversion would result in approximately 15.05 million shares being issued, representing a substantial 47.2 percent stake in Woojung Bio.
Upon conversion, Kolmar Holdings will become the largest shareholder of Woojung Bio, effectively gaining management control. Demonstrating their commitment, even before the conversion process, the existing controlling shareholder of Woojung Bio will delegate voting rights to Kolmar Holdings.
Kolmar Holdings emphasizes that Woojung Bio possesses robust capabilities as a nonclinical CRO, coupled with well-established bio research infrastructure. A representative from Kolmar Holdings stated, “The Kolmar Group aims to enhance the efficiency of its research and development activities through Woojung Bio. Conversely, Woojung Bio will benefit from the Kolmar Group’s extensive network, strengthening its business potential.”
Woojung Bio confirmed that Kolmar Holdings was selected as a strategic investor due to their profound understanding of the biotech industry, a shared vision for long-term growth, and the considerable opportunities for future collaborative ventures.
Woojung Bio elaborated in a statement: “The secured funds will be allocated towards debt repayment and improving the company’s financial standing. Furthermore, they will support new business initiatives designed to reinforce operational stability and drive future growth.”
Woojung Bio, established in 1989, underwent a leadership transition last year following the passing of its founder, Chun Byung-nyun, marking the beginning of its second-generation leadership.
