Korea Exchange Decides to Delist Kolon TissueGene (Comprehensive)

[Asia Economy Reporter Song Hwajeong] The Korea Exchange has decided to delist Kolon TissueGene, whose trading was suspended due to a change in the components of the osteoarthritis gene therapy 'Invossa K Injection (Invossa)'.

On the 4th, the Korea Exchange announced that the KOSDAQ Market Committee reviewed and resolved to delist Kolon TissueGene.

Kolon TissueGene may file an objection within 7 days from the date of receiving the delisting notice. If no objection is filed, the delisting process will proceed after the expiration of the objection period. If Kolon TissueGene files an objection, the Exchange will hold a KOSDAQ Market Committee meeting within 15 days to decide whether to delist or grant a remediation period.

Separately, Kolon TissueGene had grounds for delisting due to a refusal of opinion by external auditors for the 2019 fiscal year and a refusal of opinion by external auditors for the 2020 semi-annual fiscal year, for which a remediation period has been granted until May 10 of next year. Additionally, the substantive review procedure for delisting eligibility related to the cause arising in July (embezzlement and breach of trust allegations) will proceed after resolving the delisting cause due to refusal of audit opinion.

Last year, Kolon TissueGene faced the risk of delisting after it was revealed that the components of Invossa were kidney cells, not the originally reported cartilage cells. The Ministry of Food and Drug Safety canceled the sales approval for Invossa, and the U.S. Food and Drug Administration (FDA) decided to suspend Phase 3 clinical trials. The Exchange determined that Kolon TissueGene had falsified or omitted important information during the listing review and designated it for a substantive review of listing eligibility. Subsequently, in August last year, the Corporate Evaluation Committee reviewed Kolon TissueGene's delisting, and on October 11, the KOSDAQ Market Committee granted a 12-month remediation period.

Earlier, when the FDA allowed the resumption of Phase 3 clinical trials in April, there was some hope for maintaining the listing, but the Exchange decided to proceed with delisting.

If Kolon TissueGene's delisting is finalized, small shareholders are expected to suffer losses. As of the end of May last year, when stock trading was suspended, Kolon TissueGene's market capitalization was 489.6 billion KRW, and as of the end of last year, there were 64,555 small shareholders holding 34.48% of the shares.

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