Cellumed Withdraws Rights Offering: What Happened?
On September 19, 2025, Cellumed withdrew its planned rights offering of KRW 999,999,888, intended to secure operating funds. The reason cited was the withdrawal of payment by the third-party allottees.
Why is the Withdrawal a Problem?
Cellumed already received an auditor disclaimer of opinion due to ‘going concern uncertainties’ in its 2025 semi-annual report. Facing a severe financial crisis with a high debt-to-equity ratio of 779.99% and continuous operating losses, the company had hoped to secure funds through the rights offering. Its failure deals a significant blow to Cellumed’s fundraising ability and credibility, hindering its new business initiatives.
The Fallout: What are the Implications?
- Short-term impact: Stock price decline, negative investor sentiment
- Long-term impact: Accelerated deterioration of financial structure, increased uncertainty in new business development, heightened going concern uncertainties, difficulty in securing future funding
Investor Action Plan: What Should You Do?
Investment Opinion: Very Negative (Sell)
Cellumed is currently in a very precarious financial position, and the withdrawal of the rights offering exacerbates this crisis. Investors should closely monitor Cellumed’s future funding plans and the performance of its new businesses, carefully evaluating the company’s ability to continue as a going concern.
Key Points to Watch
- Additional fundraising plans and feasibility
- Concrete performance of new businesses
- Reaffirmation of audit opinion and securing going concern status
- Efforts and results of financial structure improvement