[Special Stock] Helixmith's Share Price Rises as Shareholder Register Closure Approaches... Preparing for a Proxy Battle?

[Asia Economy Reporter Hyungsoo Park] Helixmith's stock price is on the rise. It appears that the anticipated proxy battle ahead of the shareholder registry closure on the 22nd is influencing the stock price.

As of 11:41 AM on the 11th, Helixmith is trading at 40,450 KRW, up 7.01% from the previous day.

Helixmith will hold a shareholders' meeting on the 14th of next month. Minority shareholders have requested the convening of an extraordinary general meeting, demanding that agenda items such as amendments to the articles of incorporation and the appointment of six directors be included. The company stated that it will review and finalize these matters after receiving the necessary documents from the minority shareholders, including 'the details of the proposed amendments to the articles of incorporation and the list of director candidates,' as required by laws and the articles of incorporation.

Yoo Seung-shin, CEO of Helixmith, recently emphasized in an interview with the media that communication with shareholders is the top priority. This statement is known to be made with consideration of conflicts with the Minority Shareholders Emergency Committee. The Emergency Committee is securing proxy votes by directly meeting minority shareholders to pass a motion to dismiss CEO Kim Sun-young. It is reported that the committee has secured more than 37% of the shares. According to the Commercial Act, a motion to dismiss a director requires the attendance of at least one-third of the total issued shares (quorum) and approval by at least two-thirds of the voting rights of those present.

CEO Kim holds a 6.67% stake, and including shares held by relatives and related parties, the total is 9.29%. To prevent the dismissal of CEO Kim, Helixmith needs to secure at least an additional 10% stake.

Separately from the shareholders' meeting, Helixmith continues its efforts toward clinical success. The company announced that it will introduce the development status of the company and its candidate substances at 'Bio Digital 2021.' The clinical development status of Enzygenesis (VM202) will be the main focus of the presentation.

Helixmith's Enzygenesis (VM202), currently under development, was named among the 'Notable Clinical Results of Q1 2021' selected by the international academic journal Nature Biotechnology for its first U.S. Phase 3 clinical trial (3-1 phase, 3-1b phase) study on diabetic peripheral neuropathy (DPN).