GEMVAXLINK "300 Won Dividend Per Share... Threat to Company Survival"

GEMVAX Link claimed that the company's survival is threatened and a severe stock price decline is expected in response to minority shareholders' demands for increased dividends.

On the 22nd, GEMVAX Link stated, "The proposed dividend of 300 KRW per share by the recent minority shareholder coalition corresponds to a dividend yield of about 23%, which is an absurd figure compared to the KOSDAQ listed companies' average of 1.45%."

They added, "To pay a dividend of 300 KRW per share, approximately 25 billion KRW in funds is required, which not only threatens the company's survival but also, if the dividend is realized, a severe stock price drop is expected due to the ex-dividend effect."

They continued, "If future growth engines and operating expenses are all consumed by dividends, making company operations difficult, it would constitute grounds for an external auditor's 'disclaimer of opinion,' leading to a substantive delisting review."

According to the Financial Supervisory Service's electronic disclosure, the Emergency Response Committee composed of GEMVAX Link's minority shareholders expanded their stake from the existing 8.7% to 15.07% through a joint voting agreement with Ubio Partners.

They proposed a motion to pay a dividend of 300 KRW per share and to appoint five directors related to Ubio and corporations affiliated with Ubio, instead of the previous Emergency Response Committee's shareholder proposal of a 20 KRW dividend per share and director appointments.

GEMVAX Link argued that the Emergency Response Committee's absurd shareholder proposals and activities are a "deliberate obstruction for personal gain" rather than the company's growth.

GEMVAX Link stated, "Some individuals recommended as director candidates by the Emergency Response Committee have been reported in the media for obstructing normal management activities of listed companies, embezzlement of funds, and intentional delisting incidents," and added, "We seriously doubt whether their activities have any sincerity toward the company's growth."

GEMVAX Link apologized for past shortcomings such as investment delays and pledged to actively improve.

GEMVAX Link said, "During the COVID-19 pandemic and the period of interest rate hikes, the focus was on cautious investment rather than aggressive investment," and added, "However, with the new CEO appointed last January, we will focus on active business expansion and investor relations going forward."