Exchange Unable to Decide on Kolon TissueGene Delisting... Further Review to Resume Later

[Asia Economy Reporter Song Hwajeong] The Korea Exchange has decided not to make a delisting decision on Kolon TissueGene and to resume the review at a later date.

On the 7th, the Exchange held a KOSDAQ Market Committee meeting to discuss whether to delist Kolon TissueGene but announced that no conclusion was reached and that the review would be resumed later.

Kolon TissueGene faced a delisting crisis last year after it was revealed that the components of the osteoarthritis gene therapy drug 'Invossa K Injection (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 falsely stated 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 the delisting of Kolon TissueGene. Then, on October 11, the KOSDAQ Market Committee granted a 12-month improvement period.

At the KOSDAQ Market Committee meeting held last October after the improvement period ended, the delisting was reviewed and resolved due to reasons such as insufficient implementation of the improvement plan. Kolon TissueGene raised objections to this, and the KOSDAQ Market Committee was convened again on this day.

Separately, Kolon TissueGene has had delisting reasons due to the external auditor's disclaimer of opinion for the 2019 fiscal year and the external auditor's disclaimer of opinion for the semi-annual 2020 fiscal year, for which an improvement period has been granted until May 10 of next year. Additionally, the substantive review procedure for listing eligibility related to the delisting reason that occurred in July (charges of embezzlement and breach of trust) will proceed after resolving the delisting reason of auditor's disclaimer of opinion.

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