Canaria Bio: "We Will Correct the 'Qualified' Audit Opinion... Transactions Will Continue"

[Asia Economy Reporter Jang Hyowon] Canaria Bio (formerly Duol Mulsan) announced on the 8th that it received a qualified audit opinion for the 2021 fiscal year external audit results on the 7th.

A representative of Canaria Bio stated, "A qualified opinion is not a reason for trading suspension," and added, "It does not fall under the K-OTC delisting criteria of consecutive qualified opinions due to audit scope limitations for the last two fiscal years, so it does not affect trading on K-OTC."

Canaria Bio announced that it will consult with the next year's auditor and correct the qualified parts as soon as possible, even through a voluntary audit.

The basis for the auditor's qualified opinion was that "audit procedures related to convertible bonds held as treasury bonds at the end of December were performed, but sufficient and appropriate audit evidence could not be obtained." Treasury bonds refer to bonds issued by the company itself that are acquired and held for the purpose of early redemption or idle fund management.

A company official emphasized, "Treasury bonds are not recorded in the financial statements, so they do not affect the financial statements," and added, "The treasury bonds held by the subsidiary merged in December last year became Canaria Bio's treasury bonds after the merger, and all were canceled after the reporting period."

This explains that the cause of the qualified opinion has already been resolved. The company stated that it will consult with the next year's auditor and correct the qualified parts as soon as possible, even through a voluntary audit.

Meanwhile, Canaria Bio is a stock that has attracted attention as Korea's Gamestop due to expectations for Oregobomab, an immune-oncology drug currently undergoing global Phase 3 clinical trials, and its confrontation with short-selling forces after newly registering on the K-OTC unlisted trading market in September last year.

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