Huhons shares surged more than 17% during trading on news of its subsidiary merger, attracting significant buying interest.
According to the Korea Exchange, as of 2:17 PM, Huhons shares were trading at 38,050 won, up 5,650 won (17.44%) from the previous day.
The company announced that its board of directors approved a plan to absorb its subsidiary, Huhons Lab, into the holding company Huhons Global.
As a result of the merger, Huhons will continue to exist while Huhons Lab will be dissolved. The dissolved entity, Huhons Lab, is known for its subcutaneous injection (SC) formulation platform, 'High Diffuse,' and its capabilities in peptide drug development.
The merger ratio is set at 1 to 0.4256893 for Huhons and Huhons Lab, with the merger values determined at 34,062 won for Huhons and 14,500 won for Huhons Lab.
An extraordinary general meeting to approve the merger will be held on July 16, with plans to finalize the merger by August 18. The listing date for the new shares is scheduled for September 4.
Huhons stated that the purpose of the merger is to address the lack of new drug pipelines and the downward pressure on profitability due to government drug pricing reforms, while also strengthening its biopharmaceutical value chain and research and development (R&D) capabilities.
Previously, on April 22, Huhons decided to enhance management efficiency by merging with its wholly-owned subsidiary, Huhons Life Science, in a small-scale merger.
* This article has been translated by AI.
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