[At the Crossroads] Ewha Compotech ④ Unable to Receive Liminatus Shares for 6 Months... Only Suspicious Funds Reaped Gains

Received Locked-Up Shares Contrary to Contract
Did Mysterious Domestic Funds Gain 69 Billion Won in Profits?

KOSDAQ-listed company Ewha Compotech received shares of the US biotech firm Liminatus Pharma about six months after disclosing its acquisition, it has been revealed. Ewha Compotech had agreed to acquire shares without a lock-up period, but Liminatus Pharma provided shares that were subject to a lock-up.

Furthermore, it has been confirmed that certain parties held shares without a lock-up period at the time of the listing. These parties were able to realize profits when Liminatus Pharma's share price surged immediately after the listing. In contrast, Ewha Compotech was unable to sell its shares due to the lock-up restriction and ended up incurring significant losses.

According to the Financial Supervisory Service's electronic disclosure system on November 19, Ewha Compotech announced on April 11 that it had acquired 1,126,397 shares of Liminatus Pharma for 16.3 billion won, equivalent to about 10 US dollars per share. This transaction involved receiving shares allocated to institutional investors (PIPE) during Liminatus Pharma's listing. PIPE investment shares are not subject to a lock-up period.

However, Ewha Compotech did not receive the shares correctly. Liminatus Pharma provided Ewha Compotech with shares that were subject to a lock-up. To resolve this, the company submitted explanatory documents to the US Securities and Exchange Commission (SEC), and ultimately, it was able to receive the shares in October.

During this period, Liminatus Pharma's share price was highly volatile. After Ewha Compotech disclosed its stake acquisition, Liminatus Pharma was listed on the NASDAQ on May 1 through a SPAC merger. One month after listing, Liminatus Pharma's share price soared to 26 US dollars per share.

At that time, Ewha Compotech was unable to sell its Liminatus Pharma shares because they were subject to a lock-up. The lock-up is gradually lifted at 6, 12, and 24 months after the listing.

While Ewha Compotech's shares were locked up, Liminatus Pharma's share price plummeted. Despite news that the biotech company was planning a cryptocurrency fund related to coins, the share price eventually fell to around 1 US dollar. As a result, Ewha Compotech valued its stake in Liminatus Pharma at 2.6 billion won as of the end of the third quarter this year. This represents a valuation loss of 13.7 billion won in just about six months.

In contrast, there were parties who were able to realize profits immediately after Liminatus Pharma's listing. According to the shareholder register at the time of listing, Nongae Apple Fund No. 1 and Red Peony Fund No. 1 each held 1.47 million shares (5.7%) of Liminatus Pharma. According to Liminatus Pharma's securities registration statement prior to listing, it is presumed that these shares were not subject to a lock-up period.

If these parties had invested at 10 US dollars per share like Ewha Compotech and sold when Liminatus Pharma's share price reached 26 US dollars, they could have realized a profit of approximately 69 billion won.

Nongae Apple Fund No. 1 and Red Peony Fund No. 1 were established in Korea. These funds are based in Gangnam and Seocho, Seoul. The head of Nongae Apple Fund is Mary H. Song, while the head of Red Peony Fund is Hyun Kyungbok. In the case of Red Peony Fund, an accountant with the same name as the fund head works at an accounting firm located in the same building.

Regarding this, an Ewha Compotech representative stated, "According to former Ewha Compotech CEO Lee Kyunghoon, it is understood that the shares subject to a lock-up were received due to a mistake by Liminatus Pharma," and added, "Nongae Apple Fund No. 1 and Red Peony Fund No. 1 acquired Liminatus Pharma shares for 12 billion won, and these shares are now treasury shares of Liminatus Pharma."

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