Korea Exchange (KRX) designated Sam Chun Dang Pharm as a short-selling overheating stock and also gave notice that it would designate it as an unfaithful disclosure company.
On the 1st, Korea Exchange (KRX) said Sam Chun Dang Pharm was designated as a short-selling overheating stock and that related short-selling transactions would be banned for the day. If the share price falls 5% or more that day, the short-selling ban period can be extended.
In addition, the previous day it gave notice that Sam Chun Dang Pharm would be designated as an unfaithful disclosure company for failing to make a disclosure. The exchange determined that on Feb. 6 Sam Chun Dang Pharm distributed only a press release on business performance and the like without making a proper disclosure.
The deadline for the decision on whether to designate it as an unfaithful disclosure company is until the 23rd. Fortunately, Sam Chun Dang Pharm has zero cumulative demerit points over the past year, so even if it is finally designated as an unfaithful disclosure company, trading will not be suspended.
Meanwhile, Sam Chun Dang Pharm's stock price hit the lower limit (the bottom of the daily price band) the previous day. It is seen as the result of selling pressure after assessments that the U.S. licensing deal for an oral diabetes and obesity treatment, which had driven the share price higher, was smaller in scale than the market expected.
Sam Chun Dang Pharm kept its No. 1 spot by market capitalization on KOSDAQ, but as the share price fell into the 800,000 won range, it gave up its status as an "emperor stock" (1 million won per share).