Samchundang Pharmaceutical said Sunday that CEO Jeon In-seok has withdrawn his plan to sell approximately 250 billion won ($174 million) worth of shares through a block deal, which had been disclosed on April 24.
Jeon cited growing market distrust and damage to shareholder value as reasons for canceling the block deal. While the share sale was intended to cover gift taxes and other related tax obligations, allegations had emerged in the market that the company had exaggerated the scale of a U.S. supply contract to facilitate the block deal.
"There was absolutely no false information or exaggeration regarding the contract details, yet persistent negative allegations continued to harm shareholders," Jeon said. "I determined that protecting the company's intrinsic value takes priority over personal financial obligations, and decided to withdraw the block deal."
Jeon is scheduled to hold a press briefing later Sunday to explain the specific circumstances behind the cancellation, as well as key issues raised by the market, including allegations related to the company's proprietary platform "S-PASS" and the substance of the U.S. contract.
"Restoring market confidence through business results is the most urgent task," he said. "We will prove ourselves with concrete figures and outcomes from milestones scheduled for the second half and seek a reassessment of our corporate value."
