SEQ_NO
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2
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Date of announcement
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2022/05/11
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Time of announcement
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17:27:59
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Subject
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Announce to modify the use of cash capital increase of 2007.
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Date of events
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2022/05/11
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To which item it meets
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paragraph 16
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Statement
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1.Date of the board of directors resolution for the change:2022/05/11 2.Effective registration date of the original plan:2007/12/04 3.Resolution date of additional issuance:NA 4.Major change Reason for the change: (1)MB-6 colorectal cancer adjuvant drug (hereinafter referred to as MB-6) was approved by the Department of Health of the Executive Yuan to proceed with a Phase III clinical trail in January 2013. Starting from the fourth quarter of 2013, the Phase III clinical trail has been initiated in 6 medical centers in Taiwan. Considering the new requirements by international regulations on the natural medicines formulated with multiple APIs with regards to the Angiospermae origin, planting, detailed fingerprint chromatogram, the risk of MB-6 in NDA submission is likely increased in the future. After assessment, we decided to adjust the development of colorectal cancer adjuvant drugs. The current priority is advancing the exploratory trial on the approved drug, MS20 in combination with PD1 antibody or expand the indication of MS20 to adjuvant therapy to the colorectal cancer immunotherapy to replace the development plan of MB-6 in colorectal cancer, so that we can accelerate the process for new drugs to enter the market. (2)Company's funds can support the subsequent RD expenditure,but considering the long development timeline of this project, we plan to strengthen working capital by altering the plan and using the remaining funds of NT$31,293,000 under the cash captial increase plpan in 2007 for MB-6 adjuvant drug in colorectal cancer. This is to ensure that the funds can be used and allocated more effectively. 5.Content of each and every successive previously changed plan for raising of funds before and after change: Original capital utilization plan: Project Scheduled completion date Toatal required funds ------------------------------------------------------------------------------------------------ New drug development 2012Q4 NT$846,000,000 ================================================================================================ The first change of capital utilization plan: Project Scheduled completion date Toatal required funds ------------------------------------------------------------------------------------------------ New drug development 2012Q4 NT$579,000,000 Invest a new split up company 2008Q2 NT$171,000,000 ------------------------------------------------------------------------------------------------ Total amount NT$750,000,000 ================================================================================================ The second change of capital utilization plan: Project Scheduled completion date Toatal required funds ------------------------------------------------------------------------------------------------ New drug development 2017Q4 NT$297,562,000 Invest a new split up company 2008Q2 NT$162,094,000 Strengthen working capital 2014Q1 NT$290,344,000 ------------------------------------------------------------------------------------------------ Total amount NT$750,000,000 ================================================================================================ The third change of capital utilization plan: Project Scheduled completion date Toatal required funds ------------------------------------------------------------------------------------------------ New drug development 2017Q4 NT$281,183,000 Invest a new split up company 2008Q2 NT$162,094,000 Strengthen working capital 2015Q1 NT$306,723,000 ------------------------------------------------------------------------------------------------ Total amount NT$750,000,000 ================================================================================================ The fourth change of capital utilization plan: Project Scheduled completion date Toatal required funds ------------------------------------------------------------------------------------------------ New drug development 2017Q4 NT$249,890,000 Invest a new split up company 2008Q2 NT$162,094,000 Strengthen working capital 2022Q2 NT$338,016,000 ------------------------------------------------------------------------------------------------- Total amount NT$750,000,000 ================================================================================================= 6.Projected timetable for execution:2022Q2 7.Projected completion date:2022Q2 8.Projected possible benefits: (1)New drug development: MS-20 Microbio ”Chemo Young” obtained the first oral cancer adjuvant drug certificate in Taiwan in December 2011, and went on sale in the second quarter of 2012. Starting from 2012 to the first quarter of 2022 ”Chemo Young” sales revenue is in total of NT$286,585,000. The difference from the expected benefit of NT$656,332,000 is mainly due to the fact that the performance of the hospital channel requires all links' cooperation and the medicines purchase needs to go through the administrative procedures to get the approval from doctors. Therefore, it takes longer than other channels and the expected benefits haven't been achieved yet, but the annual revenue has shown steady growth with the marketing team's efforts. (2)Invest a new split up company: Reinvestment and division of a new company—the implementation progress of the fund implantation of Oneness Biotech Co., Ltd. has been completed in the third quarter of 2008. The Company disposed of part of Oneness Biotech’s equity in 2008, and generated the disposal benefit in total amount of NT$150,146,000. According to Oneness Biotech's 2010~2013 profit and loss after-tax reviewed and certified by the accountants, the reinvestment benefit amounting to NT$60,506,000 was recognized. So the estimated benefit of the plan of reinvestment and division of a new company has been achieved. (3)Strengthen working capital: We didn't change the expected benefit since the replenishment of working capital has been completed before this change of the plan. This time, the remaining capital of NT$31,293,000 from MB-6 project was transferred to replenishment of working capital. Calculated based on the average borrowing interest rate at the time of the plan change, it can save NT$491,000 in interest every year. 9.Difference from original projected benefits: This change of the plan will transfer the unspent funds of the MB-6 project into strengthening working capital. The expected benefit is saving about NT$491,000 in interest every year. There is a difference from the sales revenue of NT$113,400,000 expected to be generated by the original MB-6 project. 10.Effect of the current change on shareholder equity: This change of the plan is mainly transfer the unspent funds of the MB-6 project into strengthening working capital. It can benefit shareholders' rights and interests by reducing the risk of new drugs reserch and development, by improving the flexibility of capital allocation, and by saving interest expenses. 11.Abstract of the original lead underwriter's appraisal opinion: This change of the plan does not reach 20% of the total amount of the fundraising plan. It is not a change in the fundraising plan mentioned in the matters needing attention for the change of the public offering company's cash capital increase or the plan to issue corporate bonds. Therefore, there is no need to contact the original sponsoring underwriter to issue an evaluation opinion. 12.Any other matters that need to be specified:None |
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