Axion Group Lifts Seizure on Largest Shareholder’s Shares, Boosting Management Stability and New Business Momentum

KOSDAQ-listed Axion Group announced on August 1 that the stock seizure order imposed on its common shares held by its largest shareholder, Nopian, has been lifted. With the removal of this seizure, management uncertainty has been eliminated. The company plans to simultaneously pursue new business initiatives and strengthen its corporate fundamentals.

Axion Group disclosed that the Seoul Eastern District Court decided to lift the seizure. Previously, creditor Threemon Development had applied for the stock seizure based on a claim of approximately KRW 7,772,110,000, which was made public in a disclosure on July 22.

There were concerns that if the seizure continued, the largest shareholder’s ability to dispose of shares would be restricted, which could hinder management stability and the pursuit of new businesses. However, with the decision to lift the seizure coming just seven days after the disclosure, market concerns have been alleviated.

Axion Group believes this decision marks a turning point in the recovery of management stability. In particular, it is expected to have a positive impact on the ongoing merger with MJ Tech. MJ Tech is a manufacturing company that has recorded annual sales of KRW 50 billion to 70 billion for three consecutive years, maintaining stable performance. If the merger is completed, Axion Group projects that its annual sales will increase by KRW 20 billion this year and by more than KRW 50 billion next year.

An Axion Group representative stated, "This decision to lift the seizure was an opportunity to review the stability of the company’s governance structure," adding, "With uncertainty cleared, we can accelerate both the ongoing merger process and the expansion of new businesses."