Isupetasys "Received lawsuit from J.O side... Will take legal action to protect shareholder value"

Isu Petasys announced on the 2nd that the termination of the acquisition contract with J.O was justified and that it will take legal action.

The lawsuit amount filed by J.O's major shareholder is approximately 16 billion KRW, consisting of about 15.8 billion KRW for forfeiture of the deposit and 200 million KRW in damages.

A representative from Isu Petasys explained, "The contract termination was a legitimate measure due to a major breach of contractual obligations," adding, "Given that J.O is a technology-specialized listed company, there were essential contract fulfillment conditions necessary to properly complete the acquisition." They further stated, "These fulfillment conditions were not met."

Furthermore, they said, "In many cases, contracts are canceled due to breaches by the seller during the acquisition process," and added, "When a contract is terminated due to the seller's fault, the deposit should be refunded, but despite knowing this, unilaterally filing a lawsuit for forfeiture of the deposit appears to be a move to gain justification."

J.O's major shareholder claimed that the main reason for the termination of the stock purchase agreement was concerns over funding the acquisition due to uncertainties surrounding Isu Petasys's capital increase. Isu Petasys emphasized that matters related to funding the acquisition are unrelated to the stock purchase agreement.