[Edaily Reporter Kwon Oh Seok ] Global electrolyte specialist Enchem Co., Ltd.(348370)announced on the 4th that it is accelerating key procedures for the Nasdaq listing of its U.S. subsidiary, Enchem Co., Ltd., and for raising capital in the U.S.

Enchem Co., Ltd. announced today that The GrowHub Limited (hereinafter “TGHL”), a U.S. Nasdaq-listed company currently pursuing a reverse triangular merger with Enchem America, has been notified by the Nasdaq Hearing Panel of a decision to maintain its listing on a conditional basis.
According to the Form 6-K (Report of Major Events by a Foreign Company) filed by TGHL with the U.S. Securities and Exchange Commission (SEC), the Nasdaq Hearing Panel reviewed TGHL’s plan to meet listing requirements and approved an exception to maintain its listing, subject to TGHL meeting Nasdaq’s new listing standards by December 2.
With this decision, TGHL has secured the foundation to continue proceeding with the merger with Enchem Co., Ltd. and the subsequent steps toward the new Nasdaq listing of the merged entity. The company explained that as uncertainty surrounding the listing status of the target company has been alleviated, a positive environment has been created for the future merger and efforts to raise capital in the U.S.
Enchem Co., Ltd. and Enchem America, along with TGHL, signed a reverse triangular merger agreement last July. Upon completion of the merger, Enchem America will become a wholly-owned subsidiary of TGHL, and Enchem will secure an 85% fully diluted stake in the merged entity.
In conjunction with the merger and new listing procedures, Enchem Co., Ltd. is currently discussing a phased fundraising plan totaling at least $200 million with global investment institutions. The specific timing and terms of the fundraising will be determined based on the progress of the merger, the Nasdaq review, and the results of discussions with investment institutions.
Enchem Co., Ltd. is reviewing plans to utilize the raised funds as capital for the growth of its North American business, including working capital for its U.S. production facilities, securing raw materials, expanding supply to customers, and improving production efficiency. The company explained that if the U.S. subsidiary raises growth capital independently in the local market, this would reduce the burden of additional capital contributions on Enchem Co., Ltd.’s headquarters and is expected to enhance the headquarters’ liquidity and ability to manage its financial schedule.
An Enchem Co., Ltd. official emphasized, “We will strengthen the U.S. subsidiary’s self-funding capabilities to enhance our responsiveness to North American customers and the operational efficiency of our production facilities, while simultaneously improving Enchem Co., Ltd.’s overall corporate value and financial stability.”