Cha Sang-hoon, CEO of April Bio, sold 1.77 million shares to IMM for approximately 58.2 billion won on the 24th of last month, according to Financial Supervisory Service disclosures on the 1st. The transaction reduced his stake in the Korean biotech stocks company from 18.96% to 11.34%. The sale followed April Bio's 346.8 billion won investment deal with IMM and TKG Group, marking a turning point where the 2013-founded university venture transitions from founder-centric operations to a platform biotech model with external capital.
Cha Sang-hoon Sells 1.77 Million April Bio Shares to IMM for 58.2 Billion Won
According to the Financial Supervisory Service electronic disclosure system, Cha sold 1.77 million shares at 32,890 won per share through off-exchange trading on the 24th of last month. The buyers were IMM Asset Management, which acquired 1,062,000 shares, and IMM Scale-up Bio Fund No. 1, which acquired 708,000 shares. Cha's holdings decreased from 4.425 million shares to 2.655 million shares. His ownership percentage fell from 18.96% to 11.34%. The transaction represents the first meaningful cash exit for Cha since founding the company as a professor-led startup approximately 13 years ago.
April Bio Stock Price Falls 19.4% Following Disclosure
April Bio's stock price declined continuously after the disclosure on the 1st. The closing price was 40,550 won on the 30th of last month, the day before disclosure. The stock fell to 38,650 won on the 1st (down 1,900 won or 4.7%), then to 35,050 won on the 2nd (down 9.3%), and 32,700 won on the 3rd (down 6.7%). Over three trading days, the stock dropped 7,850 won or 19.4%. Market participants attributed the decline to Cha's sale price of 32,890 won per share, which was approximately 17% below the 39,700 won closing price on the transaction day and below the 34,620 won rights offering price for IMM's common stock investment. Investors expressed concern that no management premium appeared to be reflected in the founder's shares despite the transaction occurring during a management restructuring process.
External Investors Initiate Strategic Shift to Multi-Pipeline Development
Industry sources indicated the transaction originated from external investor proposals rather than company-initiated fundraising. One biotech industry source stated, "This rights offering and share transaction started with external investors approaching the company rather than April Bio actively pursuing a sale. Specifically, TKG proposed developing multiple pipelines simultaneously and provided funding support, which changed April Bio's R&D direction." April Bio previously followed a strategy of sequentially developing priority pipelines based on limited cash resources. After this large-scale capital influx, the company shifted to a strategy of developing multiple pipelines in parallel. The company secured a total of 346.8 billion won through third-party allocation rights offering, with funds flowing into company research and development and operating expenses. The 58.2 billion won from Cha's share sale was paid to Cha personally. Cha remains a major shareholder after the transaction. April Bio is a platform company that has already achieved two technology export deals. APB-A1 and APB-R3, based on the half-life extension platform 'SAFA', are under development through global partners.
FAQ
Q: How many April Bio shares did CEO Cha Sang-hoon sell and for how much?
A: Cha Sang-hoon sold 1.77 million shares at 32,890 won per share on the 24th of last month, totaling approximately 58.2 billion won. The buyers were IMM Asset Management (1,062,000 shares) and IMM Scale-up Bio Fund No. 1 (708,000 shares).
Q: How did April Bio's stock price react after the share sale disclosure?
A: April Bio's stock price fell 19.4% over three trading days following the disclosure on the 1st. The stock dropped from 40,550 won on the 30th of last month to 32,700 won on the 3rd, declining 7,850 won total.
Q: What was the strategic context behind Cha Sang-hoon's share sale?
A: Industry sources indicated external investors, particularly TKG, approached April Bio with proposals to develop multiple pipelines simultaneously with funding support. This led to April Bio securing 346.8 billion won in investment from IMM and TKG Group, with Cha's 58.2 billion won share sale occurring as part of the broader transaction that shifts the company from founder-centric operations to a platform biotech model with external capital.
