Huons and Huons Lab cancel planned merger

Huons and its subsidiary Huons Lab have decided to cancel their planned merger. The decision follows a recommendation from a special committee at Huons Global to protect shareholder value.

The special committee cited several reasons for the cancellation, including opposition from parent company shareholders, changes in the stock market environment that led to a significant drop in Huons' share price, and the discrepancy between the merger value and current market prices. There were also concerns regarding increased financial burdens due to the gap between the stock purchase request price and current market values.

While the strategic rationale for the merger—such as securing bio-new drug pipelines and integrating R&D capabilities—remains valid, the company decided to prioritize research and development, business development, and restoring shareholder trust. Huons Global CEO Song Su-young stated that the company will focus on proving the value of Huons Lab’s bio-platform technology through global technology transfer achievements.