AprilBio Shares Plunge After Executives Sell Stakes Ahead of Loss Report

"I sold all my shares to pay back my jeonse deposit" — a bewildering explanation of historic proportions. But what reversal came the next day?

AprilBio (397030) shares plummeted after the company's swing to losses last year was compounded by revelations that executives had sold large portions of their holdings, freezing investor sentiment.

According to the Korea Exchange on the 10th, AprilBio closed at 53,300 won, down 10.42% from the previous trading day. The decline widened to 16% in after-hours trading.

Executive stock sales have been identified as the primary factor dragging down the share price. According to AprilBio, advisor Seo Sang-jun sold his entire holding of 33,000 shares at 56,699 won per share on the 3rd of this month. On the same day, Senior Vice President Ji Su-sun sold all 2,500 shares she held at 56,900 won per share. Director Jin Hong-guk sold a total of 45,500 shares across five transactions from the 3rd to the 9th, reducing his holdings to 10,000 shares.

The timing of the executive stock sales coincidentally preceded the release of last year's earnings. In a disclosure on the 9th, AprilBio announced that revenue last year plunged 92.11% year-on-year to 2.2 billion won, while operating losses reached 7.3 billion won, marking a swing to deficit. Net losses totaled 9.7 billion won.

As shares tumbled, AprilBio moved to contain the damage, stating the insider sales were for personal reasons. A company representative said, "There were circumstances including tax payments, jeonse loan repayments, and moving costs due to the landlord selling the property," adding that "executives still retain significant unexercised holdings."

Despite the company's explanation, shareholder unrest and backlash are expected to continue. Market observers predict continued fallout over executives — who have intimate knowledge of internal affairs — disposing of large quantities of stock ahead of the earnings announcement.