Shaperoon approves 5-to-1 reverse stock split to boost trading stability

South Korean biopharmaceutical company Shaperoon has resolved to proceed with a 5-to-1 reverse stock split, a move aimed at improving the stability of its stock trading. The decision was made during an extraordinary shareholders' meeting.

This corporate action will consolidate existing shares, effectively reducing the total number of shares outstanding. Consequently, the par value per share will increase from 500 won to 2,500 won. The company anticipates that this consolidation will lead to a more stable trading environment.

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The company decided to reduce the number of shares to increase trading stability and focus on subsequent clinical trials for its atopic dermatitis treatment 'Nugel' and technology transfers.

Shaperoon intends to leverage this renewed stability to concentrate on advancing its key pipelines. A primary focus will be the ongoing clinical trials for 'Nugel,' its experimental treatment for atopic dermatitis. Additionally, the company plans to pursue technology transfers for its drug candidates.

The company's strategic decision follows a reported clinical trial failure for an atopic dermatitis drug, although the article does not explicitly name the failed drug. The reverse stock split is seen as a measure to bolster investor confidence and facilitate future development and potential partnerships.

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The par value per share will change from 500 won to 2,500 won.