(Reported by Han, Ting-Ting* of CAN, Central News Agency, in Taipei on 18th via E-Media)

In today’s board meeting, the directors of CHO PHARMA decided to initiate private placement of 30 million shares of common stocks. Richard Tsai of Fubon Financial intends to raise his investment in the company. In addition, Lian Ding Capital Co., Ltd., funded by tech sector giants such as United Microelectronics, WIN Semiconductors, HannStar Display Corporation, and Khein Seng Pua, the CEO of Phison Electronics Corporation, will participate this private placement.

Built upon glycosciences, CHO PHARMA has several pipeline drugs entering clinical trials. Today, its board of directors passed the proposal to initiate private placement of 30 million shares common stocks to tycoons led by Richard Tsai of Fubon Financial.

The private placement public announcement listed investors such as Emanuel* Capital, led by Chris Tsai, Richard Tsai’s only son. Another investor, Lian Ding Capital, is funded by renown figures from the tech industry, including Ming-Hsing Capital once led by Raymond Soong of LITEON Technology, investment company associated with United Microelectronics, WIN Semiconductors, HannStar Display Corporation, Khein Seng Pua (of Phison Electronics), HannsTouch, etc.

CHO PHARMA disclosed the reason behind this private placement is that their majority stock holders are government entities such as Academia Sinica that would not participate in public offering, dampening the capital increase effort. On the other hand, private placement is advantageous in lower costs of fund increase and faster to obtain the fund.

CHO PHARMA conveyed that new drug development is a long and very costly process. During which, the company is faced with no income revenue and uncertain future. Thus, long-term investors are crucial for maintaining company stability. In this case, the private placement stocks are restricted by a 3-year lock-up period, which will stabilize stock price and company operation.

CHO PHARMA revealed the company currently has cash reserve of 800 million New Taiwan Dollars. With the fund increase through private placement, they hope the new drugs developed by their proprietary technology platform could rapidly move toward clinical trials. The feat itself is a great promotion for their technology platform licensing, reinforcing company’s new drug development and technology platform double engine business direction. (Edited by Chang, Chun-Mao*) 1120518

(This news article is translated by CHO PHARMA.) *: homophonic translation Link to the Original Article https://www.cna.com.tw/news/afe/202305180358.aspx