Korean carbon nanotube manufacturer JEIO has filed a lawsuit against Isu Petasys for damages and “notification of pledge extinction” after the collapse of an acquisition agreement, the company announced Monday.
Isu Petasys signed a stock purchase agreement in November to acquire JEIO, but later abandoned the deal in the face of opposition from minority shareholders and intervention from South Korea’s Financial Supervisory Service regarding a paid-in capital increase.
The dispute centers on a down payment made by Isu Petasys, which the company is seeking to recover, claiming JEIO failed to fulfill contractual obligations. JEIO contends that Isu Petasys’ refusal to complete the transaction terminated the deal, entitling JEIO to retain the funds.
JEIO cited “significant operational losses and damage to corporate value” resulting from the failed acquisition and withdrawal of capital increase as the basis for its legal action.
A JEIO representative stated the situation arose from “unilateral claims” by Isu Petasys and that JEIO “bears no fault.”
Despite the legal challenges, JEIO CEO Kang Deuk-joo expressed confidence in the company’s product lineup, including both multiwalled and single-walled carbon nanotubes. The company aims to expand applications beyond batteries into semiconductors, automotive electronics, displays, defense, and construction materials.
