Aribio Holdings is experiencing a significant drop in its stock price, falling over 18% in early trading following the announcement that it has withdrawn from a merger with the unlisted company Aribio.
According to the Korea Exchange, as of 9:46 a.m., Aribio Holdings shares were trading at 3,190 won, down 725 won (18.52%) from the previous trading day. The stock had already dropped 25% in after-hours trading the day before, and the selling pressure continued into the regular market.
The sharp decline in stock price is attributed to the cancellation of the merger with Aribio. Aribio Holdings announced after the market closed the previous day that it had agreed to terminate the absorption merger contract with Aribio.
The company stated, "We agreed that it is necessary to prevent the increased risk associated with the exercise of a large number of stock purchase rights under the current uncertain external management conditions. We believe that terminating the merger agreement is an appropriate decision that aligns with the interests of all parties and their shareholders."
Previously, Aribio Holdings' stock price surged in May following news of the proposed merger with Aribio. The excitement grew after Aribio secured a 7 trillion won exclusive licensing agreement with China's Puxing Pharmaceutical, leading to expectations of benefits from the merger. The stock price, which was in the 3,000 won range, briefly exceeded 7,000 won.
After the failure of its standalone listing on the KOSDAQ, Aribio had been pursuing a merger with Aribio Holdings to achieve a KOSDAQ listing since August 2024. However, the merger process has faced delays due to repeated requests for corrections from the Financial Supervisory Service regarding the submitted securities registration statement.
* This article has been translated by AI.
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