Even in raising 100 billion won in capital for a new major shareholder
“It is still unclear to maintain corporate value”
Conclusion on KOSDAQ within 20 business days
ShillaJen “I will file an objection immediately”
170,000 minority shareholders ‘a little bit of hope’
ShillaJen’s shareholder association, which has been suspended from trading for one year and eight months due to executive embezzlement and breach of trust, holds a rally in front of the Korea Exchange in Yeouido, Seoul on the 18th to urge the resumption of trading. /News1 “/>
ShillaJen’s shareholder association, which has been suspended from trading for one year and eight months due to executive embezzlement and breach of trust, holds a rally in front of the Korea Exchange in Yeouido, Seoul on the 18th to urge the resumption of trading. /News1
“New Year’s wishes for 2022! ShillaJen trading resumes!” “Sillajen’s 170,000 minority shareholders! We strongly want to resume trading!”
In front of the Korea Exchange in Yeouido, Seoul on the 18th. About 100 KOSDAQ company ShillaJen Shareholders’ Federation held a protest in front of the main gate of the exchange holding a red sign that read this. According to ShillaJen’s quarterly report, as of the end of 2020, the number of minority shareholders reached 174,186. They own 92.60% of the stock. Stock trading has been suspended for about 20 months since May 4, 2020. However, their hopes were again dashed.
The company review committee of the Korea Exchange (KRX) announced on the same day that it had decided to ‘delist’ as a result of deliberation and resolution on whether to delist ShillaJen. Accordingly, it is impossible to resume trading until the decision of the Investigation Committee is overturned by filing an objection or holding the KOSDAQ Market Committee.
ShillaJen’s stock trading was suspended in May 2020 due to a substantive review of eligibility for listing due to allegations of embezzlement and breach of trust by former and current executives, including former CEO Eun-Sang Moon. In November 2020, the committee granted an improvement period of one year. After receiving M2N as the new largest shareholder in July of last year, ShillaJen raised 100 billion won in capital through two rights offerings. There was an expectation among shareholders that the conditions for listing maintenance were met.
However, the exchange’s judgment was different. An exchange official explained, “Sillajen submitted a statement of implementation of the improvement plan to the committee in December last year, but as a result of the verification by the committee, the related business improvement plan was not implemented.” It is known that the company raised 100 billion won in capital after the change of the largest shareholder, but decided that it was unclear whether the company’s value would be maintained as the new drug pipeline (development product line) decreased. It was a decision that was concerned about another damage when trading resumes.
However, this decision does not mean that ShillaJen will immediately go through the delisting process. This is because the substantive examination of eligibility for listing is conducted in a three-trial system. The judging committee is equivalent to the second instance. The ball goes to the KOSDAQ Market Committee, which will be held within 20 business days. The KOSDAQ Market Committee corresponding to the third trial may decide to delist or grant an improvement period (up to one year). Theoretically, a decision to remain listed could be made here. Also, even if the decision to close and close is made, there are still opportunities. If a company raises an objection, it can be reviewed one more time by the KOSDAQ Market Committee.
The company is puzzled by the exchange’s review results. ShillaJen said, “Currently, major clinical trials are being carried out normally, and business activities such as R&D are being operated normally.
Reporter Ko Jae-yeon yeon@hankyung.com
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