Exchange Delays Decision on Kolon TissueGene Delisting Again... To Resume Later

[Asia Economy Reporter Song Hwajeong] The Korea Exchange has once again failed to make a decision on the delisting of Kolon TissueGene and has decided to resume deliberations at a later date.

On the 15th, the Exchange held a KOSDAQ Market Committee meeting to discuss whether to delist Kolon TissueGene but was unable to reach a conclusion and announced that deliberations would be resumed later. Previously, on the 7th, the KOSDAQ Market Committee also discussed the delisting of Kolon TissueGene but did not conclude the deliberations.

The Exchange stated, "We held a KOSDAQ Market Committee meeting to reconsider the delisting of Kolon TissueGene's stock, but since additional verification such as funding plans is necessary, we have decided to resume deliberations."

Kolon TissueGene faced the risk of delisting last year after it was revealed that the components of the osteoarthritis gene therapy '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 halt 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 deliberated on Kolon TissueGene's delisting. On October 11, the KOSDAQ Market Committee granted a 12-month improvement period.

At the KOSDAQ Market Committee meeting held in October after the improvement period ended, the delisting was deliberated and resolved due to reasons such as insufficient implementation of the improvement plan. Kolon TissueGene raised objections to this, leading to further deliberations on the 7th and the current day.

Separately, Kolon TissueGene has also faced delisting reasons due to an adverse opinion from an external auditor for the 2019 fiscal year and a qualified opinion from an external auditor for the first half of the 2020 fiscal year, for which an improvement period has been granted until May 10 of next year. Additionally, the substantive review procedure related to the delisting reason arising in July (embezzlement and breach of trust allegations) will proceed after resolving the delisting reason related to the auditor's adverse opinion.

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