Kosdaq-listed Telcon RF Pharm, the majority shareholder of unlisted Vivozon, has denied rumors of potential backdoor listing of Vivozon through the acquisition of another Kosdaq-listed firm Lumimicro.

On Wednesday, Telcon RF Pharm said the planned acquisition of Lumimicro by Vivozon and Boltia owned by Vivozon’s CEO Lee Doo-hyun has nothing to do its management. Vivozon also maintained it was committed to IPO.

Earlier, Lumimicro said in a public filing that it signed a contract to change its majority stakeholders to Vivozon and Boltia through their participation in Lumimicro’s rights offering on Dec. 3.

Telcon RF Pharm went on to say the participation seems to raise capital to finance Vivozon’s phase 3 trial and secure a pipeline to meet special conditions for money-losing but promising ventures to go public.

Under the current IPO rule, Boltia is prohibited from merging with other entity or seeking backdoor listing for one year after its equity investment in Lumimicro. For its backdoor listing, Boltia needs consent from Telcon RF Pharm.

Vivozon which is soon to unveil the results of phase 2b and 3 trials in the U.S., is expected to decide its future IPO direction early next year. It is developing non-narcotic painkiller opiranserin. Anticipations for the success of the trial boosted the company’s value significantly on the K-OTC market, hitting 1.7 trillion won ($1.45 billion).

Telcon RF Pharm controls 23 percent in Vivozon.

By Pulse

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