Huons Global(084110) shot straight to the upper limit (the top of the daily price limit range) on the 27th on news that the merger between Huons Lab and Huons had fallen through.
As of 9:12 a.m. that day, Huons Global was trading at 309,000 won on the KOSDAQ market, up 7,100 won (29.83%) from the previous session. At the same time, Huons was trading at 22,900 won, down 7.66%.
Huons Global said it held a board meeting the previous day and resolved to terminate the merger agreement currently underway between Huons and Huons Lab.
Huons Group had been pursuing a plan for unlisted Huons Lab to be absorbed and merged by listed Huons. Huons Lab is a research and development corporations that holds the "HyDIFFUZE" platform technology, which converts intravenous (IV) formulation drugs into subcutaneous (SC) formulations. The group planned to transfer this technology to Huons and move into full-fledged commercialization.
However, the Huons Global minority shareholders' coalition pushed back, saying Huons Lab's value was not fully reflected in the merger process and that it was effectively a backdoor listing transaction. In particular, they took issue with the possibility that if Huons Lab were incorporated as a subsidiary of Huons, the value of the core asset held by Huons Global could be transferred to Huons.