Lim Jong-yoon, CEO of Hanmi Science Co., will become the largest shareholder of molecular diagnosis company Cancer Rop Co. by acquiring a 19.57 percent stake.

Cancer Rop announced in a regulatory filing that it will allocate 5,614,823 new shares to Lim. Lim, in return, will transfer 277,778 common shares of Hanmi Science to Cancer Rop.

Hanmi Science is the holding entity of Hanmi Pharmaceutical Group.

After the third-party allotment worth around 20 billion won ($17.2 million) is completed, Lim will become Cancer Rop’s biggest shareholder by owning a 19.57 percent stake. But the company said it would maintain the current management system to ensure business stability.

The company is led by Myungji Hospital CEO Lee Wang-jun and co-CEO Hwang Do-soon.

Cancer Rop plans to use the new capital to strengthen cooperation with Oxford Vacmadix, a spinout company from Oxford University. Cancer Rop holds a 43 percent stake in the U.K.-based cancer vaccine developer as the largest shareholder.

Cancer Rop expects its stock trading suspension would soon be lifted. Its shares have been suspended from trading since March 2019 after the company received a disclaimer of opinion from an external auditor.

As of 2:18 p.m. on Monday, shares of Hanmi Science rose 0.55 percent to 73,600 won. Shares of Kosdaq-listed Cancer Rop have been suspended after its financial statement was turned down by outside auditor in 2019.

By Choi Mira

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