Barunson E&A, the production company behind the Oscar-winning film Parasite, has had its stock trading suspended after grounds for possible delisting emerged.
The Korea Exchange’s KOSDAQ Market Division announced on October 22nd that trading in Barunson E&A shares would be suspended starting October 23th for investor protection following the emergence of grounds for delisting. Investors can no longer buy or sell the company’s shares on the stock market while the suspension remains in effect.
Barunson E&A produced Parasite, directed by Bong Joon Ho and starring Song Kang Ho. The film made history at the 2020 Academy Awards, winning four Oscars, including Best Picture, Best Director, Best Original Screenplay and Best International Feature Film. Now, the company behind the historic film faces the possibility of being removed from the stock market.
The suspension follows a prolonged decline in the company’s share price, which fell below 1,000 won ($0.75). The exchange had previously warned Barunson E&A that its listing could be at risk because of the low share price. After additional grounds for being designated a management-risk company emerged, Barunson E&A was required to keep its closing share price at or above 1,000 won ($0.75) for 45 consecutive trading days within a 90-trading-day period. The company failed to meet that requirement.
Meanwhile, the company’s largest shareholder continued buying shares through the day trading suspension. In a major shareholding disclosure filed on October 22nd, Moon Yang Kwon reported purchasing 98,000 shares on October 21st and another 318,589 shares on October 22nd. He bought a total of 516,589 shares over the two days, spending approximately 205.81 million won ($155,000). The filing listed his personal savings as the source of the funds.
Following the purchases, Moon and his specially related parties held a combined 40.08% of the company’s voting shares. However, buying existing shares on the stock market does not directly inject new capital into the company, unlike a rights offering.
The exchange has not announced a final date for delisting. It said it would provide an update on when the trading suspension will end.
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