GEMVAX "Accounting and Clinical Rumors Are Groundless... Preparing Legal Action" (Comprehensive)

[Asia Economy Reporter Hyunseok Yoo] GemVax & Kael has announced that it will actively respond to market rumors.

On the 18th, GemVax stated on its homepage that there are no issues with its clinical trials.

GemVax said, "We want to convey the company's position to shareholders and investors to prevent any damage caused by baseless rumors spreading in the stock market," adding, "The market rumors related to the accounting audits of GemVax and its affiliates, as well as the rumors about the clinical trials being conducted by GemVax, are completely unfounded."

It continued, "Currently, GemVax is calmly preparing domestic and overseas clinical trials as originally planned, and there are no other management issues," emphasizing, "Furthermore, we are preparing legal actions against short-selling forces that produce malicious rumors hindering sound corporate activities."

Along with this, GemVax issued an additional statement saying, "We have judged that many rumors spread in the market by those presumed to be linked to short-selling forces maliciously damage the rights and interests of shareholders and investors beyond mere realization of market gains," and added, "We will no longer tolerate such behavior."

It further explained, "Starting today, we will establish a department to root out the forces spreading malicious rumors and will take all possible measures, including filing complaints with the Korea Press Arbitration Commission or the police regarding baseless defamatory reports and rumors, to do our utmost to prevent damage to shareholders and investors."

Finally, GemVax emphasized, "We ask shareholders who know the sources and information related to malicious rumors and defamatory reports about the company to actively provide tips."

Meanwhile, the stock price plunged after rumors related to the accounting audits of GemVax and its affiliates spread the previous day. There were also rumors that GemVax’s clinical trials were delayed.