Cancer diagnosis specialist GenQuris is recording a limit up in the early trading session. Although it incurred losses from selling its subsidiary equity, it is interpreted as being due to the news of securing cash.

Courtesy of ZenCURIX

According to the Korea Exchange, as of 9:14 a.m. on the 26th, GenQuris is trading at 1,706 won, up 393 won (29.93%) from the previous trading day.

GenQuris announced after the market closed on the 24th that it plans to secure 5.639 billion won by selling 903,753 shares of its subsidiary NanobioLife to a company called Cyclid. The purpose of the transfer is to improve its financial structure through the sale of the held shares.

The transfer amount of about 5.6 billion won accounts for 16.83% of GenQuris's total assets and 28.91% of its equity. The scheduled transfer date is today.

However, the cash from the sale of the NanobioLife equity is 4.144 billion won. The remainder is worth 1.495 billion won in shares held by Cyclid. The cash will be received in five installments from February 28, 2024, to December 24, 2026.

Previously, in August 2020, GenQuris acquired NanobioLife for 5.7 billion won. NanobioLife's assets were 320 million won at the end of last year, but its liabilities exceed 4 billion won. GenQuris's financial situation is also not good. Its cash and cash-equivalent assets, which were 3 billion won at the end of last year, shrank to the 300 million won range as of the third quarter of this year, and its borrowing fund increased from 4.3 billion won to 7.8 billion won during the same period.