OBI Pharma held a press conference on the OTC market on September 1 to announce that its board of directors approved a capital reduction to offset accumulated losses. In accordance with regulations, the company will reduce its capital by NT$1,315,796,870, canceling 131,579,687 issued common shares. The capital reduction ratio is 50%, meaning that for every 1,000 shares, 500 old shares will be exchanged for 500 newly issued common shares. After the capital reduction, the paid-in capital will be NT$1,315,796,870, with a par value of NT$10 per share, and a total of 131,579,687 shares issued.

OBI Pharma stated that the board resolution to offset accumulated losses via capital reduction is intended to improve the company’s financial structure and enhance net worth and operational resilience. Moving forward, the company will concentrate on the development of next-generation antibody-drug conjugates (ADCs) and actively seek early-stage clinical licensing and global collaboration opportunities. As of December 31, 2024, OBI Pharma reported accumulated losses of NT$7,890,387,088.

The new shares issued under this capital reduction will be non-physical (dematerialized) and carry the same rights and obligations as the original shares. Following approval at the company’s first extraordinary shareholders’ meeting in 2025 and regulatory endorsement, the board chairman will be authorized to set the record date for the capital reduction, implement the share exchange plan, determine the reference date for exchange, and handle all other matters related to the capital reduction.

For fractional shares resulting from the capital reduction, shareholders may consolidate incomplete shares at the company’s stock agency from five days before the suspension of share transfer until the day before. Any remaining fractional shares not consolidated will be paid in cash at par value. For shareholders holding dematerialized shares, the cash for fractional shares will be used to offset associated handling fees. The board chairman is authorized to allocate any remaining fractional shares to designated parties at par value.

OBI Pharma also noted that if future changes in the company’s share capital affect the number of outstanding shares and require adjustments to the capital reduction ratio, or if legal amendments, regulatory revisions, or objective circumstances necessitate changes, the 2025 first extraordinary shareholders’ meeting will authorize the board chairman to fully manage such matters.

Resource: 浩鼎為彌補虧損決議辦理減資五成 未來專注ADC開發