The Financial Supervisory Service has halted ISU PETASYS's 550 billion won capital increase. Earlier this month, the Financial Supervisory Service had requested that ISU PETASYS rewrite its securities registration statement, citing insufficiencies, but this time, even the revised securities registration statement was rejected.
On the 23rd, the FSS noted that the review results for the securities registration statement submitted by ISU PETASYS on the 11th of this month indicated that it did not properly meet the requirements of the format. For a listed company to proceed with a capital increase, it must submit a securities registration statement to the financial authorities and pass the review. If the company fails to submit a corrected registration statement within three months of the FSS's request for correction, the capital increase will become invalid.
On the 8th of last month, ISU PETASYS announced its plan to conduct a capital increase, stating that part of the funds raised would be used to acquire J.O., a carbon material development company. ISU PETASYS explained its background for the acquisition of J.O., saying, "We can achieve synergy in improving PCB performance by jointly researching carbon nanotubes (CNT) for high-performance printed circuit board (PCB) manufacturing."
However, on the 2nd of this month, the FSS determined that relevant investment risks were not properly outlined in the securities registration statement and requested corrections. Subsequently, on the 11th of the same month, ISU PETASYS resubmitted the revised securities registration statement with some added content, but it was rejected on that same day.
Investors are demanding that ISU PETASYS completely withdraw its capital increase. The Small Shareholders Alliance criticized, "The timing of disclosures during the capital increase and acquisition process by ISU PETASYS, as well as exceptions to the lock-up period, were made very opaquely."