The Core Tech, Acquirer of KIB Plug Energy, Reported for 'False Disclosure'

The Coretec Group and Chairman Kim Seon-gi of The Coretec, Suspected of Violating the Capital Markets Act
"No Sales Since 2016, Annual Losses Ranging from Hundreds of Millions to Billions of Won"

The Coretec, which is pursuing the acquisition of KIB Plug Energy, a company listed on the KOSPI, has been confirmed to have received a complaint alleging false disclosure.

According to the financial investment industry on the 19th, complainant Mr. A filed a complaint with the Seoul Southern District Prosecutors' Office the day before, accusing The Coretec Group and Chairman Kim Seon-gi of The Coretec of suspected violations of the Capital Markets Act.

The complainant stated, "While advising to represent the interests of minority shareholders of KIB Plug Energy, I discovered a strong possibility that The Coretec's disclosure was false and filed the complaint from a public interest perspective."

According to the complaint, The Coretec Group disclosed a report on the status of large stock holdings in KIB Plug Energy on the 10th. In this disclosure, The Coretec Group reported total assets of 15.3 billion KRW, total liabilities of 5.7 billion KRW, and total equity of 9.6 billion KRW.

Additionally, when reporting the details of funds raised to acquire KIB Plug Energy shares, The Coretec stated that The Coretec Group invested 9.6 billion KRW of its own funds, and Axios Equity Fund LLC, a related party, borrowed 6 billion KRW from The Coretec Group to acquire the shares.

However, according to Investors Hub, The Coretec Group's total assets as of last year were 1.76 million USD, approximately 2.5 billion KRW. Total equity was about 150 million KRW. Furthermore, the complainant pointed out that The Coretec has had no sales since 2016 through last year and has incurred losses ranging from several hundred million to several billion KRW annually.

The complainant emphasized, "The actions of The Coretec and others could cause harm by providing false information to many shareholders through false disclosures, so thorough investigation is necessary."

Earlier, on the 15th of last month, The Coretec signed a contract to acquire 24 million shares (10.13%) of KIB Plug Energy from Open Asia Company for 15.6 billion KRW. The original contract balance payment date was the 24th of this month.

However, without receiving the balance payment, KIB Plug Energy held an extraordinary general meeting of shareholders on the 13th and appointed Chairman Kim Seon-gi of The Coretec and related personnel as executives.

Currently, KIB Plug Energy is involved in a management rights dispute lawsuit with the Minority Shareholders Solidarity. Prior to the extraordinary general meeting, the Minority Shareholders Solidarity filed an injunction with the Ulsan District Court to prohibit The Coretec side from exercising voting rights, and the court granted it on the 12th, the day before the shareholders' meeting.

Nevertheless, CEO Heo Seong-ho of KIB Plug Energy proceeded with voting including shares with restricted voting rights and appointed Chairman Kim Seon-gi and others as inside directors. Minority shareholders are reportedly preparing a lawsuit to nullify the shareholders' meeting.

Meanwhile, attempts to contact Chairman Kim Seon-gi's side for comment on the complaint were unsuccessful.