InskoBee: "US Affiliate APUS Rebounds After Trading Suspension Lifted... Risks Resolved, Capital Improvement Expected"

InskoBee, which was acquired by KS Industry, announced on May 6 that trading of its U.S.-listed affiliate, Apimeds Pharmaceuticals US, Inc. (APUS), has resumed.

According to the company, APUS resumed trading at 2:00 p.m. Eastern Time on May 5. Prior to the resumption, on May 4, an annual report (10-K) and a disclosure (8-K) containing key details regarding the merger were submitted before the market closed.

This resumption of trading was made possible after an agreement was reached between Mindwave, the merger counterparty, InskoBee, and Apimeds Korea, as well as after receiving an unqualified audit opinion on the financial statements, including coin assets, from Kreit & Chiu CPA LLP (K&C), a U.S. accounting firm specializing in digital assets.

As a result, the risk of a damages lawsuit from institutional investor ALTO OPPORTUNITY MASTER FUND, which had invested in APUS, has been resolved. At the same time, there is a strong expectation that InskoBee could realize significant profit if it sells its stake.

Previously, on April 2, APUS trading was suspended due to failure to submit the audit report and a management rights dispute. At that time, CEO Eric Emerson filed a lawsuit in the Delaware court, raising concerns over delisting and investor lawsuits simultaneously.

The current management team focused on resolving these issues. Their top priority was to ensure InskoBee was exempt from all legal risks so it would not become entangled in legal disputes. At the same time, they worked to preserve and increase the asset value of InskoBee by normalizing APUS trading. Although the book value of APUS is about 1.95 billion KRW, they judged that a rise in corporate value following relisting and the merger could generate valuation gains and help resolve capital impairment.

To this end, with the help of external experts, they devoted all efforts to finalizing a ‘SETTLEMENT AND MUTUAL RELEASE AGREEMENT’ with Singapore-based digital coin company MindWave Innovations Inc., the post-merger subsidiary Lokahi Therapeutics Inc., APUS management, Apimeds Inc. (the Korean entity), and Inscobee Inc. The agreement was officially signed on April 24.

Simultaneously, they rehired former CFO Eric Prim, and after K&C’s accounting due diligence and digital asset valuation, they obtained an unqualified audit opinion on May 4, thus meeting the requirements for trading resumption. On the first day of resumed trading, the share price rose to around $6 during the session before closing at $3.

With the lifting of the trading suspension, conditions for early maturity of obligations were eliminated. The settlement process included mutual release clauses among all stakeholders, effectively eliminating InskoBee’s legal risks related to APUS. Furthermore, an InskoBee representative has been appointed as co-CEO of the merged entity, securing a foundation for management participation.

Meanwhile, according to K&C’s 10-K report, digital assets amount to approximately $150 million, and after the merger, the company’s total assets are valued at around $165 million. Based on the current share price of $3, the company’s enterprise value is estimated at over 25 billion KRW. The company explains that this could translate into a valuation gain of roughly 23 billion KRW compared to InskoBee’s book value.

In addition, a paid-in capital increase of 10 billion KRW has already been completed, with an additional 5 billion KRW to be paid in, so the company expects the capital impairment ratio to fall below 50% by year-end, greatly increasing the likelihood of being removed from the administrative issue list.

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