Biotechs like Cellivery and NewG Lab Pharma Receive Audit “Disclaimer of 올림푸스 슬롯사이트”Notice
Several South Korean listed biotech companies involved in new drug research and development (R&D) encountered consecutive 'disclaimer of 올림푸스 슬롯사이트' notifications from external auditors regarding their financial statement audit reports last year. This development holds significant implications as it may lead to trading suspension and delisting, prompting attention towards future consequences.
Industry sources revealed on March 25th that companies like Cellivery, NewG Lab Pharma, GenN Bio, and Canaria Bio received 'disclaimer of 올림푸스 슬롯사이트' notifications from external auditors (accounting firms). Cellivery, having received a similar notification in 2022, encountered another for the 2023 fiscal year. Presently, Cellivery remains under trading suspension after receiving a 'disclaimer of 올림푸스 슬롯사이트' on its audit report in March of the previous year.
As per the audit report, Cellivery's external auditor (Samduk Accounting Firm) expressed an 올림푸스 슬롯사이트 indicating both the uncertainty of going concern and the inadequacy of internal accounting controls concerning the company's consolidated and separate financial statements for the past year. Consequently, Cellivery faces potential delisting due to Samduk Accounting Firm's 'disclaimer of 올림푸스 슬롯사이트.' The company has until April 12th to appeal to the Korea Exchange. Failure to do so will initiate the delisting process.
In response, a Cellivery spokesperson, via a notice on the company's website, stated, "Despite achieving approximately a 57% reduction in operating losses compared to the previous fiscal year through continuous management efficiency improvements and implementation of self-rescue measures over the past year, the company is in urgent need of attracting large-scale external investments to improve its financial structure and pass the re-올림푸스 슬롯사이트." Additionally, they emphasized, "Maintaining management control at the upcoming regular shareholders' meeting and extending the improvement period to attract large-scale investments immediately is the only way to prevent delisting and resume trading." Cellivery aims to resolve management disputes at the upcoming regular shareholders' meeting on March 29th and subsequently apply for an extension of the improvement period to the Korea Exchange on April 10th, intending to resume trading through ongoing discussions on attracting external investments.
NewG Lab Pharma also received a 'disclaimer of 올림푸스 슬롯사이트' for the 2023 fiscal year, following a similar notification in 2022. According to the audit report, NewG Lab Pharma’s external auditor (Daesung Samgyung Accounting Firm) expressed an 올림푸스 슬롯사이트 indicating the inadequacy of internal accounting controls regarding the company's consolidated and separate financial statements for the past year.
Similarly, GenN Bio and Canaria Bio's external auditor (Samil Accounting Firm) issued 올림푸스 슬롯사이트s indicating both the uncertainty of going concern and the inadequacy of internal accounting controls concerning the companies' consolidated and separate financial statements for the past year. NewG Lab Pharma, GenN Bio, and Canaria Bio have until April 12th to appeal to the Korea Exchange. Failure to do so will result in the initiation of the delisting process.
Industry insiders suggest that many biotech companies receive 'disclaimer of 올림푸스 슬롯사이트' notifications from accounting firms due to uncertainties regarding corporate existence, often stemming from continuous investment in clinical expenses despite a lack of clear revenue. An accountant, requesting anonymity, commented on the 'disclaimer of 올림푸스 슬롯사이트' notifications for biotechs, stating, "It was inevitable. It was adequately anticipated. Audit standards by accounting firms are becoming stricter." They further explained, "Companies struggling with financial difficulties receive 'disclaimer of 올림푸스 슬롯사이트' notifications from accounting firms if they fail to raise funds before the shareholders' meeting."
A biotech industry representative commented, "Biotech companies often receive 'disclaimer of 올림푸스 슬롯사이트' notifications due to uncertainties regarding their going concern." They added, "The increasing rigor in accounting audit standards is a positive development as it indicates a refinement process within the biotech industry."