Provisional Seizure Related to 3.55 Billion KRW Stock Payment Claim
Enforspace: "BioN Sued After Contract... Grounds for Defect"
A provisional seizure has been placed on the real estate of CTM, the largest shareholder of BioN, a company listed on KOSDAQ. Enforspace, which had signed a stock purchase agreement with CTM and BioN, requested the return of the stocks and payment, claiming defects in the contract, but the payment was not made.
Enforspace argues that BioN being sued for breach of trust and violations of the Capital Markets Act after signing the stock purchase agreement is grounds for contract termination.
According to the financial investment industry on the 20th, the Ansan branch of Suwon District Court accepted Enforspace's provisional seizure application on CTM’s Ansan factory, the largest shareholder of BioN. Enforspace requested the court to impose a provisional seizure on real estate worth 3.55 billion KRW based on its claim for the return of the stock payment from CTM.
Previously, on July 18 last year, Enforspace signed a stock purchase agreement with CTM and BioN. They also entered into a joint operation agreement. According to the contract, Enforspace first acquired 700,113 shares of BioN for a total of 3.55 billion KRW.
The remaining shares were to be acquired sequentially starting from September 23 last year. Additionally, Enforspace agreed to acquire the 41st series convertible bonds worth 10.5 billion KRW issued by BioN in May last year.
In the provisional seizure application, Enforspace stated, “When signing the stock purchase agreement with CTM and BioN, the acquisition price was set at more than four times the then BioN stock price of 1,185 KRW because CTM agreed to transfer the 41st series convertible bonds with a conversion price of 898 KRW per share together.”
However, the issue arose when BioN was sued on September 13 last year to invalidate the issuance of the convertible bonds. At that time, Mr. Lee filed a lawsuit claiming that the 41st series convertible bonds worth 10.5 billion KRW and the 42nd series convertible bonds worth 10 billion KRW issued by BioN were acts of breach of trust and fraudulent misconduct, seeking to invalidate their issuance.
An Enforspace representative said, “We became aware of BioN’s lawsuit and requested an explanation from CTM, but received no response. If this act is true, it would be grounds for a delisting review, and if we had known that the convertible bonds were issued through so-called ‘printing convertible bonds’ or ‘creating treasury bonds,’ we would never have traded stocks with CTM.”
They added, “CTM may argue that the convertible bond invalidation lawsuit is still at the filing stage, but since it has already been widely publicized through disclosures, it has become difficult to attract financial investors (FIs), making the stock transaction itself invalid. Nevertheless, CTM has not returned the prepaid stock payment, so a provisional seizure on real estate is necessary,” they emphasized.
Attempts to contact BioN for comment were made several times but went unanswered.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
