Following the signing of an international convertible bond agreement with Rhinos Asset Management (RAM) from South Korea, on 05/01/2018, Cuu Long Pharmaceutical Joint Stock Co (DCL on the HSX) held an extraordinary shareholder meeting to pass important resolutions, including the preparation for the deeper participation of RAM into the operation of DCL.

Specifically, the RAM staff have been approved by the Meeting to become the members of the board of directors of the company. So it can be said that the senior specialists of RAM who take up DCL’s Board of Directors position will ensure that RAM’s management experiences will help DCL to use capital more efficiently as well as help the company’s production activities more in line with the strategy that the two sides are looking forward to. In addition, the Meeting also approved to allow foreign investors to hold more than 25% of DCL’s voting rights without a public offer, to prepare for the next step of issuing convertible bonds if RAM converts bonds into ordinary shares.

The convertible bond issue was signed with DCL on December 19, 2017, and it has contributed 453 billion VND to DCL with the interest rate of 1%/year for 5 years, with the conversion price of 25,000 VND per share and conversion time of 01 year. All of this capital is intended to improve DCL’s production capacity and supplement working capital of DCL and its subsidiaries and associates.

Since becoming a member of F.I.T Group, DCL has made strong progress in the following areas: (i) successful acquisition of Euvipharm Pharmaceutical Company, one of the most modern pharmaceutical companies in Vietnam; (ii) new construction of Capsule III factory, becoming the largest capsule supplier (40%) in Vietnam; and (iii) the establishment of Benovas Cancer Joint Stock Company in association with SCIC to become the first cancer drug manufacturer in Vietnam.

In addition, in 2017, DCL expects the net sales to come in at VND 757 billion, while operating profit to come in at VND 90 billion and pre-tax profit at VND 99.8 billion. Currently, DCL share is traded at VND 23,050 per share (Jan 5, 2018).