OliPass, a bio corporation, saw its stock price surge during trading on the 27th. Although the company's revenue last year was reported to be below 3 billion won, putting it at risk of being designated as a management item, the stock price is rising on news that the major shareholder has changed and that the issuance of convertible bonds (CBs) is under consideration.
As of 2:30 p.m. on the same day, OliPass is trading at 3,915 won, up 815 won (26.29%) compared to the previous trading day.
After the market closed the previous day, OliPass announced that it would disclose the results of a third-party allocation capital increase on that day. OliPass is in a situation where it is highly likely to be designated as a management item, as its revenue last year fell below 3 billion won. The company has not yet submitted its final audit report.
The auditor for OliPass explained the reason for the delay, stating, "The auditor could not reach a conclusion regarding the uncertainty of the company's ability to continue as a going concern, and the company did not provide sufficient audit evidence to determine whether the valuation of intangible assets was appropriate."
However, after the stock price of OliPass suddenly hit the daily price ceiling on the 25th, the Korea Exchange required a disclosure regarding significant market fluctuations. The day before, OliPass noted that it would announce the results of the third-party allocation capital increase both on that day and on the 28th, and it stated that it was considering the issuance of CBs for operating and facility funding.
In December of last year, OliPass disclosed that it had decided on a third-party allocation capital increase of 4 billion won, which involved a change of major shareholders. On the 19th of this month, the target was changed from BM Machinery Co., Ltd. to Genocure Co., Ltd. The issuance price for new shares is set at 5,640 won per share, and payment must be completed by that day. The new shares are scheduled to be listed on the 21st of next month.