CHA Biotech Announces A Capital Raise of 41% of Outstanding Shares

• On 20 December, Chabiotech (085660 KS) announced that it plans to conduct a rights offering capital raise of 250 billion won.

• The expected rights offering price is 10,800 won (27.3% lower than current price of 14,860 won). A total of 23.148 million new shares (41% of outstanding shares) will be issued.

• This capital raise by CHA Biotech is likely to further negatively impact the company's share price in the next several weeks as many investors are concerned about excessive shares dilution.