The prosecution has indicted Jo Dae-woong, CEO of Cellivery, who was listed on the KOSDAQ as the first 'growth special listing' in the country before being delisted. The growth special listing is a system that allows corporations with high future growth potential to be listed even if their current performance is not satisfactory.
The Seoul Southern District Prosecutor's Office's Financial Investigation Division 2 (Director General Kim Soo-hong) noted on the 17th that CEO Jo Dae-woong of Cellivery was indicted for fraudulent transactions under the Capital Markets Act. An internal director of Cellivery, identified as A, who is also facing charges of being an accomplice, was indicted without detention.
Jo, the founder of Cellivery, is accused of obtaining undue benefits through false disclosures. According to the prosecution, they raised about 70 billion won by issuing convertible bonds after announcing in September 2021 that the funds would be used for research and development expenses for new drug development, including treatments for COVID-19. Jo is also accused of lending more than 20 billion won to a wet tissue manufacturer with the money obtained.
They are also suspected of avoiding losses of over 500 million won by selling stocks before a trading suspension, using undisclosed internal information that Cellivery would receive a denial of opinion from auditors around March 2023.
The biotech corporation Cellivery entered the KOSDAQ market in November 2018 as the first corporation for a growth special listing. It received a denial of opinion in its 2023 financial statement audit and was delisted in June of the previous year. Currently, it is undergoing a preliminary injunction lawsuit.