South Korean immunology-focused drug developer SHAPERON has decided to issue convertible bonds (CBs) worth $6.06M (KRW 8.6B), bringing its total capital raised to approximately $22.9M (KRW 32.5B) when combined with a $17.5M (KRW 24.9B) rights offering completed last November. The company plans to deploy the proceeds to fund clinical development operations and acquire external entities as part of a broader portfolio expansion strategy.

The CBs carry a coupon rate of 0% and a maturity yield of 3%, with a conversion price set at KRW 1,685 per share. Upon full conversion, 5,103,857 new shares would be issued, representing approximately 9.94% of total outstanding shares. The conversion window runs from April 15, 2027 through March 15, 2031. Participating investors include private equity funds managed by Mirae Asset Securities, Daishin Securities, Samsung Securities, KOREA INVESTMENT & SECURITIES, and KB Securities acting as trustees.

Notably, the CB structure excludes a refixing clause — a mechanism that would lower the conversion price if the stock declines. By removing this provision, SHAPERON is signaling confidence in its long-term valuation while limiting additional dilution risk for existing shareholders. The company noted that institutional investors accepted these terms based on expectations of mid-to-long-term value appreciation rather than near-term gains.

A portion of the proceeds is earmarked for strategic acquisitions. SHAPERON plans to target companies where performance improvements can be validated, while also leveraging over a decade of expertise in inflammasome-based drug discovery to expand into non-regulated commercial segments such as cosmetics and dermo-cosmetics. The goal is to diversify cash generation and reduce reliance on external financing over time, ultimately building a self-sustaining cash flow structure to support its core pipeline.

On the clinical front, SHAPERON is currently running a Phase 2b trial for NuGel, its atopic dermatitis treatment candidate approved by the U.S. FDA to advance to that stage. The company intends to reduce the financial burden of later-stage trials through technology licensing deals. Its Nanomab platform is also being pushed toward commercialization — the company aims to generate preclinical proof-of-concept data ahead of clinical entry, positioning the asset for out-licensing or co-development agreements at an earlier inflection point.

“This fundraise reflects institutional investors’ positive assessment of our business restructuring direction and mid-to-long-term growth strategy,” said the CEO of SHAPERON in a statement. “We will use the capital to accelerate NuGel’s clinical development and out-licensing of the Nanomab platform, while continuing strategic alliance discussions with global pharmaceutical companies.”