Jeon Woong, CEO of Lithium Force, stated on the 29th through the company website, “The largest shareholder, Lithium Insight, convened an extraordinary general meeting to appoint board members who have no history or expertise in the lithium business,” adding, “There are concerns about difficulties in the lithium business and damage to shareholder value.” Lithium Force will hold an extraordinary general meeting on the 20th of next month at the Daehwa Building in Gangnam-gu, Seoul, to appoint directors including Byeon Hee-jo, Kim Dong-seok, Park Sang-jin, and Shim Jae-young.
CEO Jeon said, “Former CEO Byeon Ik-sung promised me the status of largest shareholder of Lithium Insight and full support for a successful lithium business,” and added, “However, immediately after former CEO Byeon’s passing, the bereaved family converted convertible bonds issued by Lithium Insight to become the largest shareholder and promptly convened an extraordinary general meeting to appoint new directors.”
He continued, “After taking control of management, they are again attempting to hold an extraordinary general meeting to appoint board members without expertise in lithium,” and stated, “Due to the refusal of approval by CEO Byeon Jae-seok, who serves as co-CEO, funds for the construction of the Saemangeum factory have not been executed, causing concerning obstacles to the smooth progress of the lithium business.”
According to CEO Jeon, due to CEO Byeon Jae-seok’s opposition, updates on the overseas salt lake project have not been posted on the Lithium Force website. He also claimed that Lithium Insight provided 6 million shares of Lithium Force stock as collateral for deferred payment of inheritance tax, suggesting that company assets were used as collateral for inheritance tax payments that the bereaved family should personally bear.
He said, “Since taking office, I have worked tirelessly and devoted myself to a successful lithium business, but the convening of an extraordinary general meeting attempting a change in management control is deeply concerning,” and added, “If the change in management control causes setbacks in the lithium business, it could cause significant damage to the valuable assets of shareholders, which is worrisome.”
He emphasized, “I earnestly ask for trust and support for the current management so that the lithium business does not lose direction and drift.”
Lithium Force succeeded in producing the first battery-grade lithium hydroxide monohydrate (LiOH·H2O) pilot product in Korea in 2022. In addition, in September last year, it repaid 290 tons of battery-grade lithium carbonate borrowed from the Public Procurement Service, enabling the Public Procurement Service to stockpile domestically produced lithium carbonate for the first time. The company has continued its lithium business achievements, including actively exporting to Japanese lithium secondary battery anode material manufacturers.
CEO Jeon explained, “Based on the unique lithium extraction technology CULX, we are discussing the feasibility of jointly developing salt lakes with salt lake mining rights holders in various countries,” and added, “We are currently conducting salt lake development projects in T?rkiye and Bolivia.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
