Kim Jang-woo, CEO of EcoProBM, announced on August 21 that the company expects to raise around 900 billion won through a capital increase, a reduction of approximately 300 billion won from the initial plan due to falling stock prices. During a shareholder meeting held at NH Investment & Securities in Yeouido, Seoul, Kim apologized for the decline in stock prices, acknowledging shareholders' concerns while expressing commitment to secure additional funding from external sources to continue planned growth investments.
At the meeting, Kim stated, "The recent stock performance has not met expectations, and I apologize for not being able to reward our shareholders." This gathering was organized to address shareholder inquiries regarding the capital increase following a previous meeting on July 16. EcoProBM's board of directors had decided on June 30 to proceed with a capital increase of 1.2 trillion won through a rights offering and public offering of any unsubscribed shares, with approximately 9.9 million shares to be issued at a 20% discount for existing shareholders.
However, the stock price has continued to decline since the announcement, leading to a forecast that the actual amount raised will fall short of the target. Kim explained, "At the time of the board's resolution, the average stock price was about 150,000 won, and assuming a 20% discount, the calculated amount was 1.2 trillion won. Now, with the stock price significantly lower, the actual amount raised may decrease by about 300 billion won from the original plan."
Despite the reduced capital raise, the company plans to proceed with its growth investments. Kim emphasized, "A capital increase is not the only way for the company to secure funds. We will prepare to raise the shortfall through various other sources over sufficient time."
Of the approximately 1.2 trillion won to be raised through the capital increase, EcoProBM plans to allocate 765 billion won for acquiring a stake in the BNSI nickel refinery in Indonesia, 150 billion won for investment in its Hungarian production subsidiary, 150 billion won for production facility adjustments, automation, and next-generation material development, and the remaining 135 billion won for operational funds, including raw material purchases.
The BNSI nickel refinery in Indonesia aims to begin trial operations in the fourth quarter of this year, with commercial operations targeted for the second quarter of next year, boasting an annual production capacity of about 90,000 tons. The company anticipates achieving a double-digit operating profit margin once it reaches normal operations.
Additional investments in the Hungarian factory will also continue. The current production line, focused on NCA, will be modified to also produce NCM, with plans for capacity expansion and automation investments. The Hungarian plant, which began operations in June, is set to launch its second line in September, with the company aiming for a return to profitability in the fourth quarter.
Based on these growth investments, EcoProBM aims to increase its sales of cathode materials from approximately 70,000 tons last year to 230,000 tons by 2030. The company has also set a long-term goal of achieving 10 trillion won in revenue and over 1 trillion won in operating profit during the same period.
Kim reiterated, "It is our fundamental duty to deliver results that significantly increase the stock price and provide substantial returns to our investors. We will diligently pursue growth investments to repay our shareholders' support."
* This article has been translated by AI.
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