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Photo = Financial Supervisory Service (FSS) |
[Alpha Biz= Kim Jisun] Financial authorities have intervened to halt a rights offering by Cha Biotech, a KOSDAQ-listed company.
According to the Financial Supervisory Service’s (FSS) electronic disclosure system on Tuesday, the FSS requested Cha Biotech to submit a revised registration statement for the securities filing made on December 20, 2023.
The FSS explained that the decision was based on findings that the original securities filing either failed to meet formal requirements or contained false information on key matters, or that the unclear disclosure of important details could mislead investors or hinder rational investment decisions.
If Cha Biotech does not submit the revised statement within three months, the original filing will be considered withdrawn.
Previously, on December 20, Cha Biotech announced a shareholder-allocated rights offering worth 250 billion KRW. This large-scale offering amounted to approximately 40% of the company’s market capitalization at the time (around 600 billion KRW).
The company stated that 90 billion KRW and 20 billion KRW of the funds raised through the offering would be used to acquire securities in Cha Healthcare and Martica Holdings, respectively.
Amid concerns about shareholder dilution, Cha Biotech’s stock price has plummeted by more than 23% since the announcement. In response, a coalition of Cha Biotech's minority shareholders has demanded the withdrawal of the rights offering and has threatened legal action if the company does not comply.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
