Helixmith Holds Open Forum with Shareholders... Actively Refutes Various Allegations

[Asia Economy Reporter Chunhee Lee] Helixmith, which is in conflict with minority shareholders, invited shareholders to its Seoul headquarters and held a public forum.

Helixmith held a public forum in the form of a meeting with shareholders at 2 p.m. on the 3rd at the multipurpose hall on the 7th floor of its headquarters in Magok-dong, Gangseo-gu, Seoul. Considering the COVID-19 situation, six shareholders attended in person, and participation was also accepted through a live broadcast on YouTube. The company was represented by CEOs Sunyoung Kim and Seungshin Yoo, and Vice President Wonho Park.

At the forum, various questions from shareholders continued as an extraordinary general meeting of shareholders requested by shareholders is scheduled to be convened on the 14th. The shareholders who requested the convening of the general meeting have proposed amendments to the articles of incorporation and the appointment of six directors as agenda items.

The current conflicts surrounding Helixmith and its shareholders include the decline in stock price due to negative factors such as the failure of the Phase 3-1 clinical trial for the gene therapy 'Engensis' (VM202) for diabetic peripheral neuropathy (DPN), some losses incurred from investing approximately 250 billion KRW in a high-risk private equity fund, and the fact that CEO Sunyoung Kim, the largest shareholder, did not participate in the rights offering conducted last November.

Regarding the clinical trial suspension allegations related to Engensis, CEO Sunyoung Kim emphasized, “The clinical trials for Engensis’ DPN Phase 3-2, ALS Phase 2, and CMT 1/2a are progressing without any issues.” He added, “In particular, for the DPN Phase 3-2 trial being conducted in the U.S., as of the end of May, screening has been conducted on a total of 170 patients, with 28 patients dosed and screening ongoing for 44 patients.” He stated, “The goal is to announce key results after mid-2022, following six months of treatment and follow-up observation of 152 patients in the DPN Phase 3-2 trial.”

Regarding the investment losses incurred in the high-risk private equity fund, Vice President Wonho Park explained that the loss amount recorded in the accounting books is based on an unfavorable scenario and is difficult to recognize as an actual loss. He emphasized that continuous efforts are being made to recover the investment and stated that a report will be made again after legal procedures are completed and recovery is finalized.

Regarding issues raised about himself, CEO Kim also emphasized that he is not attached to his position as CEO. He said, “I have been looking for alternatives to the CEO position for a long time,” and added, “We are trying to bring in someone who can manage issues related to financial accounting and communication.”

CEO Kim further reiterated his promise to contribute shares to Helixmith in the event of failure in the Engensis clinical trial or failure to achieve stock price targets, saying, “This is currently being broadcast live on YouTube and has already been reported by dozens of media outlets.” However, regarding formalizing this pledge through legal procedures, he took a reserved stance, saying, “I will seriously consider whether it is necessary to go through such a process after the extraordinary general meeting.”

Helixmith CEO Seungshin Yoo said, “We will devote all our capabilities to the success of the clinical trials to further enhance corporate value and do our best to improve shareholder value. We will continue to communicate with shareholders through the website, shareholder bulletin board, and YouTube channel in the future.”