HEM Pharma announced that it had completed payment for its second CB issuance and begun work on a new second Sejong plant. Domestic institutional investors and others participated in the financing, which will support efforts to expand orders from Amway and investment in the automation of intestinal microbiome analysis.
HEM Pharma announced that it had completed payment for KRW 54 billion in CBs from major institutional investors, including the National Growth Fund. The company will use the funds to proceed with construction of a second Sejong plant, backed by a KRW 27 billion investment, to accommodate expanded orders from global partner Amway.
The CB conversion price is KRW 43,912. Conversion requests may be made one year after payment, while the put option may be exercised after 2 years. The bonds were issued without a refixing provision, and the number of shares to be issued was set at 1,229,732, representing a 14.55% stake. GVA Asset Management led the investment.
The global expansion is driven by large-scale supply to Amway. The initial order for the new probiotic product Nutrilite Probiotics, jointly developed by the companies, is worth approximately KRW 4.6 billion. It is scheduled for an advance launch in the domestic market through Amway Korea in September and is expected to be produced at the Sejong plant.
Expanded sales of the intestinal microbiome analysis service MyLab Plus have contributed to revenue growth, with cumulative contracts since May reaching approximately 90,000, worth about KRW 9.3 billion. Investment is planned to expand analytical equipment, automate operations and strengthen the AI-based BiGNAL platform, with operations targeted to begin in 2027.