The KOSDAQ listing of Oscotec subsidiary Genosco, which underwent a review for six months, ultimately fell through due to the controversy over "split listing."
According to the Korea Exchange on the 11th, the listing review committee concluded not to approve the preliminary review of Genosco's technology-special listing. The revenue structure, which divides earnings between Oscotec and Leclaza at the same ratio, ultimately impeded progress, leading to the "duplicate listing controversy." (Related article☞ Oscotec subsidiary under review for 5 months… Korea Exchange leans toward disapproval of listing)
Genosco is the company that first developed the domestic anticancer drug "Leclaza" (ingredient name, Rayseritinib). Last October, Oscotec's stock price plummeted following the news of Genosco's application for a technology-special listing.
Oscotec clarified that research and development (R&D) with Genosco is being conducted separately and persuaded shareholders that raising funds for new drug development is essential for an initial public offering (IPO).
However, minority shareholders strongly opposed it at last month's regular shareholder meeting, blocking the re-election of founder Kim Jeong-geun. There are also suspicions that Kim's son holds shares in Genosco, raising questions about whether this listing is part of a succession plan.
The decision not to approve this listing has now moved to the KOSDAQ Market Committee. Generally, if the listing review committee makes a disapproval decision, the market committee is likely to make the same decision, and the corporations often voluntarily withdraw their listing.