KRX delays decision on Kolon TissueGene

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KRX delays decision on Kolon TissueGene

The Korea Exchange decided Wednesday to postpone its decision on whether to delist Kolon TissueGene until July 10.

The exchange said in a regulatory filing that it will spend 15 additional trading days to verify details in the ongoing Invossa investigation and decide whether to move forward with delisting the company from the secondary Kosdaq. The authority was scheduled to rule on the case Wednesday.

The Korea Exchange has been investigating the issue since May 28 when the Ministry of Food and Drug Safety nullified the license of Kolon Life Science affiliate’s gene therapy drug Invossa for filing false documentation for approval.

The authority suspended shares of Kolon TissueGene and its parent company shortly after the nullification. Although the suspension of Kolon Life Science was lifted the next day, Kolon TissueGene has continued to be suspended at 8,010 won ($6.81) per share, down more than 80 percent down from its March 5 peak of 42,850 won.

If the exchange rules to delist Kolon TissueGene, 59,400 minority shareholders who hold 4.51 million shares, or 36.6 percent, of the company could suffer around 200 billion won in damages.

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