GammaNu Wins Delisting Invalidity Lawsuit... Trading Resumes on the 18th

[Asia Economy Reporter Song Hwajeong] GammaNu has won the final victory in the lawsuit against the Korea Exchange (KRX) seeking to nullify its delisting, and for the first time in history, the delisting decision is expected to be canceled and trading resumed after a liquidation trading process was conducted.

According to industry sources on the 13th, the Supreme Court dismissed the appeal without oral argument in the appeal trial of GammaNu's lawsuit to confirm the invalidity of the delisting, thereby affirming the lower court's ruling in favor of GammaNu's claim.

A KRX official stated, "At the time, the Exchange made the best decision according to regulations, but the delisting decision was canceled by the Supreme Court's judgment," adding, "Trading will be resumed in accordance with the Supreme Court's decision."

GammaNu faced delisting reasons after receiving a 'disclaimer of opinion' due to scope limitation in the audit opinion on its 2017 fiscal year audit report submitted in 2018. Subsequently, GammaNu filed an objection, was granted a delisting deferral once, and entered an improvement period. However, it failed to submit a re-audit report with an 'unqualified' opinion within the improvement deadline, and ultimately, the delisting was confirmed in September 2018, leading to the liquidation trading process. In October, the court accepted GammaNu's injunction request to suspend the effect of the delisting decision, halting the liquidation trading, and in January 2019, GammaNu received an 'unqualified' audit opinion on the 2017 fiscal year audit report, resolving the original reason for delisting.

GammaNu's trading suspension is expected to be lifted on the 18th. The Exchange announced through a disclosure, "The suspension of stock trading will be lifted following the Supreme Court's ruling invalidating the delisting decision," and added, "The lifting date is the 18th." It also stated that separate guidance will be provided regarding the calculation of the reference price for the resumption of trading. GammaNu will be removed from the management stock list and transferred to the Mid-Cap Enterprise Division starting from the 14th.

Previously, in 2007, International Trading and Chungnam Spinning were delisted but resumed trading after winning lawsuits invalidating the delisting decisions; however, their trading resumed while still under trading suspension. In contrast, since liquidation trading had already been conducted for GammaNu, issues such as price calculation upon trading resumption remain. A KRX official explained, "Since this is the first time that trading is resumed for a company that underwent liquidation trading, it is necessary to review whether trading should resume at the previous price or reflect the liquidation trading price."