Medicox Resolves 4 Penalty Points... "Committed to Ensuring Transaction Stability"

[Asia Economy Reporter Jang Hyowon] MedicoX, a KOSDAQ-listed company, announced that the 4 penalty points related to non-compliant disclosures will be resolved on the 9th, which is expected to significantly reduce the risk of trading suspension. Since the remaining penalty points are also scheduled to be removed as of June 18, the company stated it will do its best to ensure trading stability.

MedicoX recently disclosed its position on the resolution of penalty points and various risks that have been raised through an announcement on its website.

A MedicoX representative said, “As stated in the website announcement, the risk of trading suspension due to accumulated penalty points related to non-compliant disclosures will be primarily resolved with the removal of 4 penalty points on the 9th. We will continue to review all possible scenarios carefully and conduct thorough pre-inspections.” Regarding the risk of being designated as a management item due to operating loss, the company, which changed to a December fiscal year corporation in 2020, recorded a profit based on the separate financial statements for the June 2019 fiscal year, so concerns about this are unfounded,” the representative added.

Currently conducting a rights offering and general public offering for a capital increase worth 33.8 billion KRW, MedicoX’s largest shareholder, Mecox Biomed, recently decided to participate 100% in the subscription as part of responsible management. Through this participation in MedicoX’s capital increase, Mecox Biomed will newly acquire 2,389,857 shares, maintaining its status as the largest shareholder with a total stake of 11.11%.

In addition, Ocean Renaissance Private Equity Fund, the second largest shareholder holding a management participation stake, also announced it will acquire 100% of the allocated 1,739,395 shares, bringing the total management participation stake in MedicoX to 19.2% after the capital increase.

Since the largest shareholder has decided to participate 100% in the capital increase, MedicoX plans to focus more on stabilizing management and securing new growth engines. The company explained that by prioritizing the improvement of its financial structure, it will establish a stable profit base and, from a mid- to long-term perspective, continue to strengthen competitiveness in the bio business sector through ▲clinical funding ▲acquisition of leading pharmaceutical companies.