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BELLEVUE, Wash. - OSR Holdings, Inc. (NASDAQ:OSRH) provided an update Wednesday on its planned acquisition of South Korean medical device company Woori IO Co., Ltd., which is developing noninvasive glucose monitoring technology. The company, currently valued at $17.9 million, has seen its stock decline over 91% in the past year, according to InvestingPro data.
Under the proposed transaction, Woori IO would become a wholly owned subsidiary of OSR Holdings Co., Ltd., a Korean affiliate of OSRH. According to the terms sheet, Woori IO shareholders would receive newly issued shares in the Korean affiliate, with rights to exchange them for OSRH common stock if OSRH’s share price reaches $10.00 within three years.
The $10 share price threshold represents a significant premium over OSRH’s current trading levels. If this price target is not met within the specified timeframe, the conversion would not occur and Woori IO shareholders would remain equity holders in the privately held Korean entity.
"This is not a dilution event, but a strong vote of confidence," said Peter Hwang, CEO of OSR Holdings, in the press release.
Woori IO’s technology uses near-infrared spectroscopy to measure glucose levels without needles, potentially making it suitable for integration into wearable devices. The company has completed a proof-of-concept study at Korea University Hospital and is preparing for a larger confirmatory study for regulatory approval in Korea.
Industry reports project the global blood glucose monitoring device market to exceed $40 billion by 2030, driven by increasing diabetes prevalence and demand for painless monitoring solutions. While OSRH appears undervalued according to InvestingPro Fair Value metrics, investors should note that the company is not currently profitable, with negative earnings per share of -$1.80 in the last twelve months. InvestingPro subscribers have access to 10 additional key insights about OSRH’s financial health and market position.
No company has yet received regulatory approval for truly noninvasive glucose monitoring. Earlier this year, Woori IO was selected to participate in Samsung Electronics’ C-Lab Outside startup program.
OSRH has a 6-month exclusivity period to complete due diligence, with plans to execute definitive agreements within that timeframe.
The information in this article is based on a company press release.
In other recent news, OSR Holdings announced its strategic move to acquire South Korean medical device company Woori IO Co., Ltd. through its Korean affiliate. This acquisition would result in Woori IO becoming a wholly owned subsidiary, with shareholders receiving OSRK shares that could potentially be converted to OSRH common stock. Additionally, OSR Holdings revealed plans for a $50 million security token offering in 2025, which will accept Bitcoin, Tether, and Taekwondo Access Credit as subscription currencies. The company also appointed Dr. Andreas Niethammer as Chief Medical Officer of its subsidiary, Vaximm AG, marking his return to the company he co-founded. In governance news, independent director Sang Hyun Kim resigned from the board, with the company stating that his departure was not due to any disagreements. These developments reflect OSR Holdings’ ongoing strategic initiatives and leadership changes.
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