HLB Innovation Company accelerates CAR-T therapy clinical trials through 40.5 billion yuan in convertible bonds

HLB Innovation decides to issue convertible bonds totaling 40.5 billion Korean won, thereby securing the funds needed for its subsidiary’s new drug development in advance. The company believes this move will help accelerate the clinical trial pace of its subsidiary Verismo Therapeutics’ next-generation CAR-T therapies and strengthen its financial foundation when conducting overseas market technology transfer or partnership negotiations.

HLB Innovation announced that its board of directors approved the resolution to issue convertible bonds on May 6, 2026. Convertible bonds are bonds that can be converted into stock upon meeting certain conditions. For companies, this is a way to raise large-scale funds immediately while reducing interest burdens compared to regular corporate bonds. The issuance conditions are: a face interest rate of 0.0%, a yield to maturity of 2.0%, with the maturity date set for May 15, 2029. The conversion price is set at 25,885 Korean won, and the payment date is scheduled for May 15, 2027.

The funds raised are intended to be used for the development of next-generation CAR-T therapies by its subsidiary Verismo Therapeutics. CAR-T is a cell therapy that uses the patient’s immune cells (T cells) to attack cancer cells. If successfully developed, it will be regarded as a high-value-added anti-cancer treatment. However, clinical trials require substantial funding and time for patient recruitment, process development, and regulatory compliance. Therefore, for biotech companies, not only their technological strength but also their ability to steadily raise funds to advance clinical trial phases often becomes an important criterion for assessing their corporate value.

What is notable in this issuance is that HLB Innovation has designed a structure that grants all investors a “call option.” Here, the “call option” refers to the issuer or designated entity’s right to buy back the related bonds under certain conditions, effectively a “redemption right.” This allows the company to retain flexibility to adjust the number of convertible bonds based on future stock price trends or financial conditions; from a market perspective, this can be seen as a mechanism aimed at managing the potential dilution of existing shareholders’ equity. Although convertible bonds offer high flexibility in fundraising, an increase in stock conversions later can lead to a higher number of shares outstanding, potentially putting pressure on existing shareholders’ value. Therefore, such conditions are considered important factors in investment decision-making.

Recently, in the biotech industry, financing methods and timing often become as critical as R&D achievements in determining corporate competitiveness. Especially in negotiations with global pharmaceutical companies, the clinical progress of candidate substances, financial strength, and development sustainability are evaluated together. HLB Innovation’s decision this time is less about ensuring simple operational funds and more about accelerating clinical development schedules and gaining negotiation leverage. This trend may lead biotech companies to combine technological development with financial strategies to gain market trust in the future.