Dentons Lee successfully advised SillaJen, Inc. (“SillaJen”) in responding to a substantive examination by the Korea Exchange to determine SillaJen’s eligibility to remain listed on the Korea Exchange.

SillaJen is an anticancer drug developer. It had once climbed to the KOSDAQ market capitalization Top 2, and the number of its minority shareholders reached approximately 170,000, reflecting great interest of the market in SillaJen.

However, its ability to remain listed on the Korea Exchange was placed in jeopardy beginning in May 2020, when trading of SillaJen stocks on the Korea Exchange was suspended due to claims of alleged embezzlement and breach of trust by the leadership of the company. Additionally, the Korea Exchange initiated a substantive examination of SillaJen’s eligibility to remain listed on the Exchange.

In early 2021, SillaJen turned to Dentons Lee to help it protect its ability to remain listed and end its stock suspension. The Capital Markets Group of Dentons Lee, led by Partner Ghil-Won Jo, with assistance of Attorneys Weon-Jae Yang and Yun-Sil Jang, thoroughly analyzed the situation and rendered comprehensive legal advice. They helped SillaJen to preemptively establish response strategies and implementation plans for each expected scenario in the future. In particular, after SillaJen was given an improvement period by the KOSDAQ Market Committee in February of this year, Dentons Lee provided SillaJen with the legal advice it needed to cooperatively carry out the Committee’s requirements including: (i) expansion of a new drug development pipeline; (ii) expansion of its professional manpower such as appointing a new CMO (Chief Marketing Officer); and (iii) additional improvements in its  management transparency. Dentons Lee also provided advice needed for resuming SillaJen’s stock trading and interacted with the KOSDAQ Market Committee to facilitate that.

Following Dentons Lee’s advice, SillaJen strategy was successful. The KOSDAQ Market Committee of the Korea Exchange decided not to delist ShillaJen and to allow resumption of its stock trading on October 12, 2022. This was a significant outcome because it occurred much faster than the market’s general prediction.

Dentons Lee will continue to use its experience rendering legal advice and forging cooperation platforms with the Korea Exchange to help resolve similar cases for companies facing potential de-listing in the future.

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