SillaJen has delayed its board meeting, which was expected to confirm its decision for securing new funds worth around 220 billion won ($194.89 million), according to industry sources on March 14.

The board was originally set to meet on March 12 to deliberate on its plans for securing fresh funds through issuing convertible bonds.

According to industry insiders, the delay was due to some changes in the schedule of Kium Securities, which is organizing the deal with investors. Since it is organizing the deal through sell-down transactions and the amount of fresh funds were already once adjusted from 300 billion won to 220 billion won, the delay could mean additional adjustments to the funding amount.

The Korean company said although the schedule has been delayed slightly it aims to receive additional funds before the shareholders meeting on March 27.

SillaJen needs additional funds because it has been losing money over the last three years. Moreover, it spends around 50 billion won for research and development every year on average.

Its operating loss which reached 46.8 billion won in 2016 increased to 47.1 billion won as of the third quarter last year.

By Song Seung-hyun (ssh@heraldcorp.com)