ISU PETASYS, a printed circuit board (PCB) corporation, decided to withdraw its plans to acquire JEIO, a carbon nanotube (CNT) manufacturer, leading to a surge to the upper limit price (the maximum price limit) in after-hours transaction following the market close on the 23rd.
ISU PETASYS shares were traded at 35,100 won in after-hours transaction at 4:50 p.m. on the same day, up 9.86% (3,150 won) from the regular market closing price of 31,950 won. The upper limit for after-hours transactions is 10% compared to the closing price.
ISU PETASYS announced that on the same day, after the regular market close, it notified the sellers of the termination of the contract due to the breach of obligations under the stock purchase agreement (SPA).
Earlier, ISU PETASYS's announcement of a 550 billion won capital increase plan alongside its acquisition of JEIO caused a sharp drop in its stock price, as many investors believed that business synergies between the two corporations would be difficult to realize.
However, the capital increase will be pursued at a reduced scale. ISU PETASYS plans to issue 10,162,800 new shares to raise 250 billion won, with all funds earmarked for facility investment.
Once ISU PETASYS's amended securities registration statement passes the Financial Supervisory Service's review, it will finalize the allocation of new shares on the 25th of next month, with subscriptions for existing shareholders held from April 9 to 10. If there are any unallocated shares, a public offering subscription will take place from the 14th to 15th of the same month, and the new shares are expected to begin trading on May 1.