RFTECH to raise 9 billion won from Oseong Hi-Tech in third-party share issue

RFTECH said Wednesday it will raise 9 billion won ($6.78 million) in operating capital by issuing 1.471 million new shares to its largest shareholder, Oseong Hi-Tech, and an affiliate, the company said in a regulatory filing.

The Kosdaq-listed company priced the new common shares at 6,120 won ($5) each, a 5 percent discount to the reference price. The shares are due to be paid in on Nov. 12 and are scheduled to list on Dec. 7.

The board approved the third-party allotment the same day. The buyer group comprises Oseong Hi-Tech and Nadia New Technology Investment Trust No. 68, a specially related party of the largest shareholder. The company said the share sale is exempt from a securities registration statement because the new shares are subject to a one-year lockup.

RFTECH plans to spend 5 billion won ($3.77 million) of the proceeds this year and 4 billion won ($3.01 million) in 2027 on operating funds.

The capital raising follows a year of balance-sheet repair. RFTECH sold 20 billion won ($15.1 million) of its stake in RF Bio in January and bought back 23.4 billion won ($17.6 million) of convertible bonds before maturity in March.

Oseong Hi-Tech became RFTECH's largest shareholder this year. In September, the company posted a merger announcement and a notice convening an extraordinary shareholders' meeting as it began absorbing an affiliate.