Funding for KOSDAQ-listed Curiant is being delayed. Curiant had planned to issue perpetual convertible bonds (CBs) and regular CBs totaling 140 billion won in June to attract investors. However, concerns are rising in the financial investment industry that the target amount may not be met due to a contraction in investor sentiment toward the bio sector.
According to the IB (investment bank) industry on the 4th, Curiant's mezzanine financing schedule—bonds convertible into shares—is being delayed. Although the company had planned to issue CBs totaling 140 billion won, it appears that insufficient investor interest has led to preparations for a reduced issuance. KB Securities is serving as the lead underwriter.
Curiant had previously planned to issue perpetual CBs (including convertible redeemable preferred shares) worth 700 billion won and regular CBs worth 700 billion won. The company conducted investor relations (IR) sessions for investors in April and scheduled payment completion by June 19.
According to the Information Memorandum (IM) circulated in the market, Curiant's perpetual CB has a maturity of 30 years, while regular CBs have a five-year maturity. The lock-up period for both is one year. Investors in regular CBs can exercise put options (the right to sell at a predetermined price) starting from the 24th month after issuance and every three months thereafter. Curiant offered these investors a YTP (yield-to-early-repayment rate) of 2.0%.
The GPs (general partners) of PEFs (private equity funds) allocating capital to Curiant's CBs include Set Asset Investment, Gaia Venture Partners, and ZTJ Private Equity. These companies establish limited partnership investment vehicles to manage the PEFs and gather LPs (institutional investors) to channel investment funds into Curiant.
However, recent contraction in bio-sector investor sentiment has sharply reduced LP interest. This is due to disappointing results from major clinical trial and approval events by companies such as Kolon TissueGen and HLB, alongside continued regulatory pressure on the pharmaceutical and biotech industries (including adjustments to public disclosures).
More than a month after the scheduled timeline, the amount raised stands at approximately 700 billion won—only half of the original plan. The IB industry expects even less funding to be secured.
Curiant had previously planned that if the total raised falls short of 140 billion won, the ratio between perpetual CBs (including convertible redeemable preferred shares) and regular CBs would be adjusted to 2:1. For example, if 600 billion won is raised, 400 billion won would come from perpetual CBs and 200 billion won from regular CBs.
This plan is interpreted as a strategic move to prioritize capital expansion through perpetual CBs. As of the end of the first quarter this year, Curiant's consolidated deficit stood at 245.5 billion won—an increase of 32.6 billion won compared to the same period last year (212.9 billion won). Consolidated revenue remained similar at around 1.9 billion won during the same period, but operating losses widened from 6.7 billion won to 7.7 billion won due to the heavy R&D expenditures typical of biotech companies.
Curiant expects this funding round to secure liquidity and significantly boost its corporate valuation. As of market close on this day, Curiant's market capitalization reached 819.6 billion won. The company is currently conducting clinical development for anticancer drugs, infectious disease treatments, and anti-inflammatory agents while accelerating research for technology transfers.
A Curiant official stated, "It is difficult to confirm matters related to public disclosures," adding, "Despite the challenging market conditions, all initiatives being pursued by the company are proceeding as planned."
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