DA Technology "Acquired VOG to Recover Investment Funds... No Relation to GemVaxLink"

With the global expansion of electric vehicle demand and the benefits from the U.S. Inflation Reduction Act (IRA), materials, parts, and equipment companies related to secondary batteries are gaining attention as structural growth stocks. DA Technology continues its winning streak in securing orders for secondary battery equipment, supported by the expansion of new production line investments by global battery companies both domestically and internationally. As of April this year, the cumulative order amount reached approximately 38 billion KRW, surpassing 70% of last year's sales and raising expectations for performance.

However, some point out that controversies surrounding the management rights sale contract of Vog International (Vog) signed between DA Technology and Kukbo still act as obstacles to the stock price increase. In April, DA Technology announced a decision to acquire 94.69% of Vog’s shares for 13 billion KRW through the 'Acquisition of Stocks and Equity Securities of Other Companies.' During this process, Vog became embroiled in a management rights dispute involving Gemvax Link’s management and minority shareholders.

We asked about the current status and future plans regarding DA Technology’s acquisition of Vog.

Q. What was the background for acquiring Vog, a golf apparel company, at a time when the secondary battery business is showing visible results?

A. To secure liquidity for expanding secondary battery orders, we planned to exercise conversion rights on some of Kukbo’s previously invested convertible bonds (CBs). However, due to Kukbo’s deteriorating business performance and declining corporate value, the loss on conversion shares was significant. As part of a plan to recover the remaining investment funds, we decided to acquire Vog through a substitute payment method involving Kukbo’s existing Vog shares and CBs to be issued by DA Technology.

Q. Since the payment of a 1.3 billion KRW deposit related to the Vog acquisition on April 19, the issuance of the 13th series convertible bonds (CBs) planned to be issued to Kukbo via substitute payment has been continuously delayed. Why is this?

A. The stock purchase agreement with Kukbo for Vog includes conditions that Kukbo must fulfill before the transfer. Due diligence related to these matters is currently underway. Due to the delay in the due diligence period, the Vog acquisition process is also being postponed.

Q. During the Vog acquisition process, you became involved in the Gemvax Link management rights dispute. Could you explain?

A. DA Technology has only paid the deposit related to the Vog acquisition and has no practical involvement in exercising management rights. Vog, which should be working toward management normalization, unilaterally participated in the Gemvax Link management rights dispute without consulting DA Technology, the acquiring party. Despite having no connection, DA Technology was mistakenly perceived as the force behind the dispute, severely damaging corporate and shareholder value.

Regarding the Gemvax Link dispute, DA Technology has not received any complaints or notifications to date. We plan to take strong legal action against malicious rumors or the spread of false information related to this matter.

Q. Investors are greatly concerned due to the delay in the Vog acquisition schedule and the impact of the Gemvax Link dispute. What is the company’s position?

A. The Vog acquisition was an unavoidable choice in the process of recovering investment assets to strengthen the secondary battery business. Regarding the disputes arising during the acquisition process, which was decided in good faith, we have communicated contract violations to Kukbo and Vog and requested corrective actions. DA Technology promises to resolve these issues wisely based on the principle of maximizing corporate and shareholder value.

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