ST Cube "Efforts to Resolve Reasons for Designation as a Management Item This Year"

Immunocheckpoint inhibitor developer STCube announced on the 23rd that it will resolve the reason for being designated as a management item due to continuous business losses before corporate tax expenses this year.

Jung Hyunjin, CEO of STCube, has been managing the company without compensation since March. As the CEO and major shareholder, he is determined to fulfill his responsibilities to lift the management item designation.

Jung Hyunjin, CEO of STCube, said, "I deeply feel responsible for not being able to avoid the designation as a management item as a listed company and am making every effort to overcome the current situation." He added, "It is taking time to resolve this in the best way to protect shareholder value," and promised, "I vow to use every possible method to resolve this within this year."

STCube is diversifying all possible measures to meet the loss requirements, including new investment attraction and technology export.

CEO Jung said, "Due to the management item issue, the corporate value is declining regardless of the company's fundamentals," and added, "We are gaining more confidence in the clinical data, which is the core competitiveness of our biotech business." He emphasized, "The rapid patient enrollment is possible because the efficacy is sufficiently confirmed."

He continued, "Outstanding data is being accumulated in Phase 1b/2 clinical trials for small cell lung cancer and colorectal cancer, and both global big pharma and domestic large companies have shown great interest." He also mentioned, "We are currently negotiating to share clinical progress within acceptable limits even before academic presentations."

According to the KOSDAQ listing regulations, companies listed on the KOSDAQ market are designated as management items if the ratio of accumulated losses to equity exceeds 50% twice or more in the last three fiscal years.

STCube was designated as a management item in March due to a consolidated loss before tax of 24.5 billion KRW last year caused by increased clinical trial costs. The company explained that it has approximately 35 billion KRW in cash and cash equivalents as of the end of last year and about 27 billion KRW as of the first quarter of this year, so there is no problem with cash flow until Phase 1b/2 clinical trials.