GemVax: "We Will Dispel Market Concerns Through Improved Financial Structure"

Published 11 Nov.2025 17:34(KST)

Concerns Over Cautionary Stock Designation Largely Resolved Through Capital Increase and Profitability Improvement
Rights Offering Withdrawn; Private Placement Funding Planned Following Final PSP Clinical Trial Results

GemVax & KAEL has decided, through a board resolution, to withdraw its initial plan for a rights offering and instead pursue private placement funding.

On November 11, GemVax announced that it had decided to change its fundraising method, judging that it was necessary to minimize confusion and uncertainty in the capital market.

The company had initially planned a rights offering with a public offering of forfeited shares to raise funds for research and development operations and debt repayment. However, throughout the Financial Supervisory Service’s review of the securities registration statement, multiple requests for amendments were made, and delays in the payment date were anticipated.

GemVax now plans to resolve short-term liquidity risks and eliminate market concerns by securing capital quickly through private placement following the announcement of the final results of its progressive supranuclear palsy (PSP) extension clinical trial. This will also finalize its previously uncertain fundraising plan.

The company noted that, apart from the rights offering, it had already strengthened its financial stability through capital increases, profitability improvements, and cost reductions, and thus has largely addressed concerns about being designated as an administrative or cautionary stock.

According to GemVax, its equity capital increased from 29 billion won at the end of last year to 40.9 billion won as of June 30 this year, due to the exercise of bonds with warrants (BW). Additional capital was also secured during the third quarter of this year. The company explained that the increase in equity capital through BW exercises has resolved the key risk of “loss exceeding 50%,” which was the main reason for concerns about administrative stock designation. GemVax predicted that, given the significant increase in the loss tolerance threshold used to determine administrative stock designation, its pre-tax loss for 2025 will not exceed this threshold.

GemVax recorded operating losses for four consecutive fiscal years up to last year. If another operating loss occurs this year, there is a risk of being designated as a cautionary stock. However, the company believes the likelihood is low. In the first half of this year, GemVax posted sales of approximately 37.4 billion won and an operating loss of about 3.5 billion won, with the operating loss decreasing compared to the same period last year. The company is focusing its efforts on cost reduction and profitability improvement in the second half of the year as well.

A GemVax representative stated, “We have made company-wide efforts to secure financial stability,” adding, “As a result, we believe concerns about being designated as an administrative or investment cautionary stock have been largely resolved.”

The representative continued, “We will continue to strengthen our internal financial stability through multifaceted review and efforts during the remainder of the business period, and will ensure that additional fundraising proceeds smoothly to fully dispel market concerns.”

Additionally, the company added, “We will do our utmost to ensure the successful development of GV1001, a treatment for neurodegenerative diseases such as progressive supranuclear palsy, Alzheimer’s disease, and Lou Gehrig’s disease, which is currently under research.”

GV1001 is a multi-target drug that simultaneously inhibits the accumulation of beta-amyloid and aggregation of tau proteins in nerve cells, and exhibits various effects such as anti-inflammatory, antioxidant, and mitochondrial protection.