Iwon Compotech Invests 2.5 Billion KRW in 4-Month-Old Startup 'Innovation'

[Asia Economy Reporter Jang Hyowon] Iwon Compotech invested 2.5 billion KRW in a newly established corporation that has been in operation for 4 months, acquiring a 29% stake. This values the company at 8.5 billion KRW, although the company's performance and business details have not been disclosed. Investigation revealed that the CEO of this company previously served as an executive at companies facing delisting risks.

According to the Financial Supervisory Service on the 17th, Iwon Compotech announced on the 14th that it would acquire 25,000 shares of Innovation Co., Ltd. for 2.5 billion KRW. The shares of Innovation, with a face value of 5,000 KRW, were valued at 100,000 KRW per share. This amount corresponds to 12.7% of Iwon Compotech's equity capital.

Iwon Compotech is participating in Innovation's paid-in capital increase through new share issuance. After the new shares are issued, Innovation's shares will increase from 60,000 to 85,000 shares. Following the capital increase, Iwon Compotech will hold a 29.41% stake in Innovation.

Innovation was established on December 17 last year in Seongnam-si, Gyeonggi-do, with a capital of 50 million KRW. Through a capital increase in February, the capital was raised to 300 million KRW. As of the end of last year, there were no sales and only a loss of 6 million KRW was recorded.

Iwon Compotech valued Innovation, which has been established for 4 months, at 8.5 billion KRW. According to the board meeting minutes, Innovation is a company primarily engaged in disease diagnosis through companion diagnostic kits and screening diagnostic kits, as well as research on cell therapy products.

Iwon Compotech stated in the minutes, “We judge that the accuracy of Innovation's diagnostic kits is outstandingly superior compared to competitors, and we plan to establish a joint business model with the company through investment.”

The CEO of Innovation is Mr. Kim. CEO Kim was an inside director of IMTEC, a KOSDAQ-listed company. IMTEC was suspended from trading on the 6th after receiving an audit opinion refusal. An audit opinion refusal is grounds for delisting. Until 2017, he also served as a director of Converse, a KOSPI-listed company. Converse is also facing delisting risks due to an audit opinion refusal last year.

Regarding this, an Innovation official stated, “CEO Kim resigned from IMTEC in June last year,” and “Converse was taken over and operated by new management after CEO Kim resigned three years ago, and the company's difficulties are unrelated to him.”

The largest shareholder of Innovation is Manobio, holding 26,000 shares. Even after Iwon Compotech's capital increase is completed, Manobio will hold 30.59% of the shares, so there will be no change in the largest shareholder. Manobio is also a newly established corporation. Manobio was established on December 13 last year, four days before Innovation, with a capital of 1 million KRW.

Regarding this, an Iwon Compotech official said, “The investment was made after receiving an external evaluation from an accounting firm.”

This content was produced with the assistance of AI translation services.