JW Biotech Confident in Turnaround... "Aiming to End Management Dispute in First Half and Succeed in New Business"

[Asia Economy Reporter Jang Hyowon] Biotechnology specialist company GW Biotech (CEO Yang Jaewon) announced on the 18th that it will end the management rights dispute lawsuit filed by Subon Life & Health (hereinafter ‘Subon’) within the first half of the year and achieve a turnaround in all indicators such as sales and profits through new businesses currently being pursued in the second half.

GW Biotech stated that the management rights dispute lawsuit by Subon, which some shareholders are concerned about, has already been won in all provisional injunctions related to management rights, so there is no issue.

The court dismissed Subon’s numerous provisional injunction applications, including ▲suspension of duty execution ▲suspension of the effectiveness of the extraordinary general meeting resolution ▲cancellation of the extraordinary general meeting resolution, stating ‘no grounds.’ Recently, Subon has filed an appeal in response to this.

A company official explained, “Only the main lawsuit (appeal) of the same case, which has already been won in the provisional injunction, remains,” adding, “It appears to be a time-wasting lawsuit with no practical benefit for Subon, which holds only a 6% stake.”

He added, “According to the Capital Markets Act, the issuance of convertible bonds, a major channel for fundraising, is prohibited during the management rights lawsuit period, and we are cautious about Subon abusing this,” further stating, “Since this could harm good-faith shareholders, we will do our best to promptly conclude the management rights dispute through legal procedures within the first half.”

The company also expressed confidence in the performance of the new business currently being pursued. GW Biotech is recruiting new global makers in the scientific equipment distribution business, which generates about 50 billion KRW in annual sales, while promoting a shift from offline sales networks to online. The company expects to maximize sales and profits through this.

Additionally, promising results are expected in the CoviHeal project, which involves the transfer of world-class inactivated vaccine technology. CoviHeal has completed the first phase of Vero cell culture and is currently proceeding with the second phase of technology transfer.

A company official said, “The primary goal is to achieve a turnaround through new businesses in the second half,” adding, “We will expand new businesses such as vaccines, e-commerce, and health functional foods to improve the financial structure and make every effort to protect minority shareholders and enhance shareholder value.”

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