Abion Alleviates Concerns Over Designation as Management Item... "Pipeline Clinical Trials Progressing Smoothly and Active Discussions on Technology Transfer"

Abion dismissed concerns raised on the 14th about the possibility of being designated as a management item.

The company stated, "Concerns about designation as a management item were raised due to poor performance last year," adding, "We are classified as a technology-specialized listed company, so the criteria for designation as a management item due to sales shortfall do not apply until this year."

It also explained that according to the delisting system improvement plan announced by the Financial Services Commission earlier this year, the sales requirement will only apply to companies with a market capitalization of 60 billion KRW or less starting in 2027. Regarding the occurrence of continuing operations loss before income tax (law loss), the company stated that until last year's performance, it did not meet the criteria for designation as a management item, so even if law loss occurs, there is no concern about being designated as a management item.

An Abion official said, "Sales from the research and development service contract with the Defense Science Research Institute, which was secured last year, were partially deferred, resulting in decreased sales," and added, "Operating losses are due to progress in global Phase 2 clinical trials of key pipelines." He continued, "Efforts to improve finances are ongoing, including a significant improvement in the debt ratio due to capital increase."

The main causes of the net loss are derivative valuation losses compared to the previous period and fair value measurement financial assets (FVPL) valuation losses. Since the refixing clause was deleted through an agreement with holders of the 5th convertible bonds (CB) recently, it is expected that the risk of derivative transaction losses due to stock price fluctuations will be eliminated in the future.

A company official emphasized, "We have strengthened financial stability by deleting the CB refixing clause, and the global clinical trials of key pipelines are progressing smoothly," adding, "Currently, discussions on global technology transfers are also being conducted closely, and we will do our best to visualize research and development achievements to enhance corporate value."

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