Fintech Company Connect Pursues Acquisition of Medicox Management Rights... "Acquiring 5.99% Stake, Becoming Second Largest Shareholder"

[Asia Economy Reporter Jang Hyowon] MedicoX, a company listed on KOSDAQ, will be sold to fintech specialist company Kanak.

MedicoX announced on the 23rd that it has signed a "Stock and Management Rights Sale Agreement" to sell all 5,595,938 shares, equivalent to 5.99% of the total shares, held by its second largest shareholder Mecox Biomed, along with management rights, to Kanak for approximately 11.2 billion KRW.

The current largest shareholder of MedicoX is the financial investor (FI) "L2 1 Association," holding 13.22% of shares, while Mecox Biomed, the second largest shareholder, has been managing the company. Through this stock transfer agreement, Kanak will secure management rights of MedicoX and the status of the second largest shareholder holding 5.99% of shares starting February 10 next year.

Lee Won-il, CEO of Kanak, said, "Since fundraising targeting institutional investors and venture capital is planned, we will proceed with the acquisition process without any setbacks," adding, "We plan to consider various business synergies and discover business sectors that can be progressively expanded between the two companies."

Founded in June last year, Kanak is a fintech specialist company that independently developed the integrated online and offline payment solution "ePAYDAY." The expected cumulative annual sales for this year are approximately 7.5 billion KRW, with an operating profit of about 3.7 billion KRW. CEO Lee Won-il established the company to create a business model that provides convenient and reasonable services to consumers and merchants through a new fintech model combining finance and software, based on his 13 years of experience leading software development companies related to telecommunications.

Kanak's "ePAYDAY" utilizes accumulated payment information and big data for medical data analysis and disease prediction, offering various customized services to hospitals and clinics. The company aims to commercialize an integrated program that combines existing EMR and CRM programs used by hospitals with payment solutions. They also plan to incorporate metaverse technology, which is emerging as a key industry topic, to reduce physical space constraints between patients and medical staff, build big data, smart hospital systems, and simulation centers, and enhance healthcare service technology. Their strategy is to differentiate by integrating experiential medical services with the ePAYDAY payment solution.

MedicoX expects that its bio business network, which has expanded diversely this year through affiliated company Mecox Curemed and distribution contracts with Flexense and Blister, will synergize well with Kanak’s business direction.

A MedicoX representative stated, "The new management system, which we will welcome amid multifaceted structural improvements, can be a new leap forward for the company," adding, "Since Kanak has built a solid profit business base with proven technology in the fintech industry, we will actively cooperate to ensure that pioneering the metaverse-based fintech market by leveraging MedicoX’s own bio industry network leads to a successful new business."