ShillaJen, driven to the ‘climax of the stalemate’… 170,000 minority shareholders who waited two years “I am in tears”

On the 18th, the Exchange Examination Committee “Decision to delist”
ShillaJen’s side “Explain immediately after filing an objection”
Another decision at the KOSDAQ market within 20 days

The front of the Korea Exchange in Yeongdeungpo-gu, Seoul on the 18th. News 1

ShillaJen, which had been suspended for about two years on suspicion of breach of management by the former management, could not finally get out of the crisis of ‘delisting’. At the end of 2020, they were given a one-year improvement period and started to improve their governance and financial structures, but they failed to get a decision to ‘keep listing’ from the exchange. The 170,000 minority shareholders who had been tortured with hope for nearly two years with their investments tied up strongly opposed the exchange’s decision on that day.

Exchange decides to delist ShillaJen

On the 18th, the exchange held a corporate review committee (examination committee) and decided to delist ShillaJen. On this day, the committee was held about one year and two months after the decision to ‘give a one-year improvement period’ in the listing qualification review of ShillaJen at the end of November 2020. ShillaJen submitted a statement of implementation of the improvement plan to the exchange on the 21st of last month after the improvement period was over, but the exchange decided to close the business because the company’s implementation details were insufficient.

Shillajen and minority shareholders could not hide their bewilderment. This is because there were a lot of prospects inside and outside the bio and securities industry that the exchange would make a decision to keep ShillaJen listed. As Shillajen has shown strong will to normalize its management over the past year, such as appointing a new CEO following the replacement of the largest shareholder (M2N) in July last year, the exchange has taken into consideration efforts to secure management transparency and improve governance. was expected to do.

Immediately after the announcement, a Shillajen official said, “We will immediately begin preparing for an objection, and will actively explain it at the KOSDAQ Market Committee in the future.” “Currently, management activities such as major clinical trials and R&D are proceeding and operating normally,” he said.

Minority shareholders of more than 170,000 are also in disrepair. According to ShillaJen’s quarterly report, as of the end of 2020, there were 174,186 minority shareholders, with a 92.6% stake in the stock. One Shillajen shareholder raised his voice, saying, “I was tortured with hope for nearly two years and wasted both my property and time.”

In the future, the KOSDAQ market committee will reconfirm whether it will be listed or not.

The exchange decision on this day does not mean that ShillaJen will be withdrawn from the stock market right away. The exchange will hold the KOSDAQ Market Committee within 20 business days (February 18) to deliberate and decide whether to delist or whether to grant an improvement period. Of course, we cannot rule out the possibility of overturning the committee’s decision at this time and a decision to maintain the listing. However, the exchange explained that there is virtually no possibility of a 180-degree change in results from delisting to maintaining listing.

If a decision to delist is made again at this meeting, ShillaJen may file an objection within 15 days of notification of the exchange’s decision. According to the objection, the exchange will hold the KOSDAQ Market Committee within 20 days and decide whether to delist again. In fact, it is the final procedure to determine whether or not to delist. At this time, if the committee again grants an improvement period within one year, the decision on whether to cancel or not may be delayed by another year. In this case, the number of hopeful advisors for shareholders will also increase by one more year.

Earlier, as former and current executives, including former CEO Eun-sang Moon, were arrested and indicted on charges of embezzlement and breach of trust, ShillaJen’s stock trading was suspended on May 4, 2020. At one time, it ranked second in market capitalization on the KOSDAQ. On the last trading day just before the suspension, the stock price of Shillajen was 12,100 won, with a market cap of 1.24 trillion won.

Jo Ah-reum reporter

Sora Lee reporter

Balance to see the world, Hankook Ilbo Copyright © Hankookilbo

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