EN
X
NEWS
Here is the news of Plasmapp, which opens up the future with technology
News / Notice
[Media Releases] Plasmapp changes major shareholder to Dreamtech, signaling turnaround
Writer : plasmapp(business@plasmapp.com) Date : 2024-07-18 Hits : 544

▶ Plasmapp changes its major shareholder to Dreamtech through a recent capital increase

▶ Visible turnaround in performance through synergies in North American sales and marketing, and manufacturing efficiency

▶ Secures funds for new product development, sales, and marketing strategies, and strengthens financial stability with this investment


Bio-plasma deep-tech company Plasmapp (405000) announced that its major shareholder will change to Dreamtech (192650).


On the 18th, Plasmapp revealed that it had attracted approximately 15.4 billion won in investment through a third-party allocation method for a capital increase, targeting investors including medical professionals, alongside strategic investments from its new major shareholder, Dreamtech (192650), and Namuga (190510).


Dreamtech, which has become the major shareholder through this investment, is recognized for its strengths in achieving performance turnarounds through revenue growth and cost structure improvements based on synergies among its affiliates. A representative example of this is the revenue growth and performance turnaround of Namuga, which Dreamtech acquired in 2020. Utilizing Dreamtech's strengths, Plasmapp is expected to overcome its various limitations as a technology-focused startup and significantly enhance its internal capabilities.


Both companies anticipate various synergies from this change in major shareholder. Plasmapp will leverage Dreamtech's proven medical device mass production capabilities, which meet the high-quality standards required by leading markets in the US and Europe. This will ensure product quality competitiveness and a stable mass production supply chain, as well as achieve high levels of manufacturing efficiency. Especially from the product development stage, the ability to develop products suitable for mass production and sales will greatly aid in the early stabilization of new product quality and marketability. Moreover, synergies with Cardiac Insight, Inc., an American medical device company and subsidiary of Dreamtech, are expected to rapidly grow medical device sales in overseas markets, particularly in North America, through its North American and APAC sales and marketing capabilities.


Additionally, by utilizing Cardiac Insight’s sales and marketing capabilities, Plasmapp plans to identify various customer needs in the medical field, incorporate these into its sales and marketing strategies, and enhance them for effective sales activities. Beyond the current target market of dental products, the company plans to expand its market to various other medical fields by identifying diverse needs across the medical industry.


In addition to the synergies with Dreamtech, synergies with Namuga's camera module development capabilities are also anticipated. By incorporating Namuga's vision technologies such as sensing, ultra-fine analysis, and vision AI into Plasmapp's various new products, the company aims to implement advanced medical tool sterilization management systems. This includes integrating Namuga's 3D ToF into existing sterilizers and reactivators, developing more user-friendly products.


With the funds raised from this investment, Plasmapp plans to more effectively conduct domestic and international sales and marketing activities, accelerate the development of various new products, and achieve successful launches of the new products planned for release this year. Moreover, the capital increase ensures that Plasmapp can operate stably until its performance turns around, reducing its debt ratio, and interest expenses, and addressing concerns about its financial stability, which has been a weakness. This capital increase is expected to be the last, eliminating the need for additional external funding such as repeated capital increases and convertible bond issuances, thereby enhancing shareholder value.


Finally, by incorporating Dreamtech's management know-how, Plasmapp expects to evolve its corporate structure. The company plans to strengthen internal capabilities in areas such as finance and accounting, human resources, and to establish systems such as a manufacturing execution system (MES) and customer relationship management (CRM) system, leading to a more organized and systematized management structure.


Youbong Lim, CEO of Plasmapp, stated, "Through this investment and change in major shareholder, we have secured stable funds to respond to the market demand, which is growing by more than double every year. This marks a significant turning point not only for manufacturing efficiency but also for our global sales and marketing activities. We aim to achieve sustainable growth, surpassing just reaching the break-even point."


Hyungmin Kim, CEO of Dreamtech, said, "The strategic partnership with Plasmapp, which has been ongoing, will be further strengthened with this change in major shareholder. Synergies are expected in all areas of Plasmapp's business. Utilizing Dreamtech's sales network through our US subsidiary, Cardiac Insight, opens opportunities for cross-selling various products to diverse customers. Moreover, we expect to capture customer needs sensitively in the medical field, reflecting these in product improvements and new product developments, further enhancing future synergies."


Dreamtech is expanding its business areas beyond smartphone PBA modules and fingerprint sensor modules to include semiconductor memory modules and SSDs. The company has a strong capability in developing and producing smart medical devices, leveraging its long-established OEM business expertise and global ODM capabilities through production bases in Vietnam and India. Namuga excels in 3D ToF camera modules for smartphones and various IT devices and robots, and is expanding its business areas to automotive, security, and medical cameras.


Prev.
Next Plasmapp continues global expansion with STERLINK U510 model