1. What is ABL Bio’s Warrant Exercise?

ABL Bio will exercise warrants for 327,546 shares (conversion price of ₩6,106) on August 14, 2025. This represents approximately 1.12% of the current market capitalization and is expected to have a limited direct impact on the market.

2. Why the Warrant Exercise?

The warrant exercise will bring additional capital inflow to ABL Bio. This funding is expected to contribute to the long-term enhancement of corporate value by being utilized for the ongoing Phase 2 clinical trials of its core pipeline, ABN401 (Babamkip), and R&D activities. While ABL Bio recorded a net loss in the first quarter, this is due to R&D investment and should not be interpreted negatively.

3. Impact on Stock Price?

In the short term, there may be a stock dilution effect due to the increase in the number of shares. However, considering the small size of 1.12% compared to the market capitalization, the direct impact on the stock price is expected to be minimal. Rather, securing additional funds through the warrant exercise can accelerate R&D and clinical development, driving long-term stock price growth. Of course, stock price volatility may increase depending on the success of clinical trials and the outcome of technology transfer negotiations.

4. What Should Investors Do?

Investors should focus on future clinical trial results and the progress of technology transfer negotiations rather than the warrant exercise itself. Positive news could act as a momentum for stock price increases. It is also important to continuously monitor changes in external environmental factors such as exchange rates, interest rates, and raw material prices. It is advisable to make investment decisions by comprehensively considering the current stock price trend, ABL Bio’s technology, and its growth potential.