Enchem Pursues U.S. Subsidiary Nasdaq Listing via Merger, Eyes Over 200 Billion Won Funding

Enchem-0.55%
According to MoneyToday, Enchem announced on July 21 that its U.S. subsidiary Enchem America would merge with Nasdaq-listed The Growhub to pursue a Nasdaq listing and secure funding. Enchem America accounted for approximately 50% of Enchem's consolidated revenue, generating 164 billion won in sales last year. The merger, scheduled for completion in August, faces scrutiny under South Korea's new "duplicate listing regulation" effective from late July, which requires parent company board approval and independent committee review. Enchem stated it would comply with regulatory guidelines and implement staged shareholder returns to address investor concerns about value dilution. The company faces liquidity pressure with only 7.2 billion won in cash reserves and 150 billion won in short-term debt due within months.
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