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[Media Releases] Plasmapp Signs Joint Investment Agreement with Strategic Investor (SI) Dreamtech
Writer : plasmapp(business@plasmapp.com) Date : 2024-04-19 Hits : 840

▶ Strategic investment agreement was finalized, transferring mass production of sterilizer consumables and joint investment in automation facilities

▶ Reduced financial costs and strengthened financial strength by selling the factory site and secured funds for investment in automated production facilities

Plasmapp (405000), a bio-plasma deep-tech company, announced today that it has signed a joint investment agreement with strategic investor (SI) Dreamtech Co., Ltd. to transfer mass production of sterilizer consumables (brand: STERMATE) and facilities including automation equipment.

Plasmapp (405000) and Dreamtech signed an agreement on January 25th last year to strategically invest and collaborate on mass production development and manufacturing production. Since then, Plasmapp has proceeded with the transfer of primary mass production centered on sterilizer products sold to the North American market, and Dreamtech has participated in Plasmap's capital increase and is a strategic investor and production partner with a stake of 8.84%. In particular, the main sterilizer products recently exported to the United States are already produced by Dreamtech.

Plasmapp's sterilizer business is structured to generate continuous revenue by selling sterilizer products first and sterilizer consumables as a follow-on revenue model. In order to meet the rapidly growing market demand for sterilizers due to the accumulation of sterilizer products sold to the global medical device market, the company acquired a factory site in 2022 and built primary automation facilities in the existing factory in 2023 through the smart factory business. 

In order to maximize the productivity and profitability of Plasmapp's sterilizer consumables production, it was necessary to invest in secondary automation facilities and expand the factory, which is expected to increase the productivity and profitability of sterilizer consumables by signing a joint investment agreement with Dreamtech, a strategic investor. At the same time, the sale of the factory site acquired in 2022 along with this agreement will reduce financial costs, improve financial strength, and free up resources to invest in secondary automation equipment.

A Plasmapp representative said, "The acquisition and tenancy agreement was signed based on the 'Special Act on the Development of High-tech Medical Complexes' and the 'Special Act on the Creation and Development of Innovative Cities'." "The site was sold at the original site sale price in accordance with the relevant laws, and no loss on disposal of tangible assets was recognized in the financial statements as a result of the asset sale." 

"In line with the agreement for strategic collaboration signed with Dreamtech last year, we have been making strategic investments by transferring mass production in stages, and we are making concrete progress with the joint investment in this automation facility," said Youbong Lim, CEO of Plasmapp. "We will strengthen our cooperation in the future, laying the framework for more stable corporate operations and creating sustainable growth."

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