Park Sang-woo, CEO of NK Max, recently expressed his commitment to stabilizing the governance structure in response to the reduction of his shares and the decline in stock price caused by forced sales.
On the 1st, Park held a press conference at the Federation of Korean Industries building in Yeouido, Seoul, where he made these remarks.
NK Max announced on the 30th of last month that the shares held by Park and related parties decreased from 15.06% (12,482,184 shares) to 0.76% (628,902 shares). The main cause was forced sales related to a stock collateral loan agreement.
The forced sales by bondholders began on the 24th of last month. The shares Park had provided as collateral for the loan were flooded through securities firm branches because the collateral shortage could not be resolved. However, the sale of the largest shareholder’s shares held as collateral by Ebest Investment & Securities was not a forced sale but a sale for repayment. Park explained, "On the 24th of last month, Ebest Investment & Securities contacted me first by phone and informed me that since the stock price hit the lower limit, they would 'sell to repay.' I replied that I understood as there was no other option."
A company official emphasized, "In that situation, Park had no choice but to have his shares sold. He did not request the forced sale at the opening price on the 25th to be done voluntarily."
NK Max is currently engaging with various investors, including financial investors (FI) and strategic investors (SI), to stabilize the governance structure. Park said, "We are continuously meeting with investors and will do our best to stabilize the governance structure as quickly as possible." He added, "We are in the process of discussing various aspects such as forming a joint board of directors and reacquiring shares."
Although the largest shareholder position is currently vacant, the company maintains that there are no issues with business operations. He explained, "Even though the largest shareholder is absent, there is no gap in management rights. We expect positive effects as the Advanced Regenerative Medicine and Advanced Biopharmaceuticals Act amendment has been passed."
Park plans to do his utmost to restore shareholder value as the company is expected to grow significantly starting this year. He emphasized, "I have been working in this field for 21 years, and starting this year, we expect to show a greatly completed form by next year. I apologize to shareholders who suffered losses due to the stock price decline and will normalize the company as soon as possible."
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