EONE Diagnomics Genome Center Co. (EDGC), South Korea-based clinical diagnostic testing services provider, will issue convertible bonds worth 60 billion won ($51.5 million) in a public offering for the first time as a Korean bio company, announced the company on Wednesday.

It will issue 60 billion won worth convertible bonds at a conversion price of 15,500 won apiece with a 20 percent refix option that allows readjustment of conversion or acquisition price when the stock price falls. Its investors are also guaranteed principle and yield in early repayment, the company explained.

Kim Tae-hyun, an IR executive at EDGC, expected the latest convertible bond issuance would offer investors relatively safer investment opportunities compared to new stock issuance and protect investors their principle and yield interest.

Kosdaq-listed EDGC shares lost 3.9 percent to 14,700 won on Wednesday.

EDGC is a leader in the Asian market with its Cell-free DNA innovative technology based NICE, a non-invasive prenatal test and liquid biopsy in joint research with U.S. Grail, which has recently been acquired by Illumina, the world’s top genome analyzing equipment firm, for $8 billion.

The company will use the proceeds to nurture new growth engines to earn 100 billion won in revenue this year, 170 billion won in 2021, 270 billion won in 2022 and 500 billion won in 2023, which would be the biggest in the Asian genome diagnosis market.

Of the proceeds, it plans to use 35 billion won in securing a research and development center, developing bio health supplementary items, purchasing a factory site for distribution, as well as securing office space, GMP facility and equipment. It will also inject 15 billion won in advancing liquid biopsy technology and non-invasive prenatal test technology to enter the antibody-based new bio drug market and carry out research in virus-led diseases.

EDGC’s healthcare division is seeking to expand sales of genomic-based personally-customized health supplementary products and examination equipment business that focuses on diagnostic products, reagents, and COVID-19 test kits. It currently exports real-time PCR COVID-19 test kits, COVID-19 specimen collection and storage kits and COVID-19 IgM/IgG kits to 60 countries across the world.

The liquid biopsy technology of EDGC’s genome research center analyzes Cell-free DNA. It helps diagnose source of cancer at an extremely early stage. It is considered an advanced medical technology that will fundamentally replace existing tissue biopsy.

The center is currently carrying out joint research with hospitals at home and abroad on lung cancer, breast cancer, prostate cancer, and liver cancer. It is also in collaboration with the academia circle in European Union and China for global clinical trial.

By Kim Si-gyun and Lee Eun-joo

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