Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we discuss the additional financing requirements, changed shareholding structure, and the next steps for Eoflow. </li>
<li>Eoflow is one of the best performing stocks in the Korean stock market in the past one month as its shares have soared 249% in this period.</li>
<li>The details of the oral argument (Insulet vs Eoflow) at the U.S. Appellate Court suggest that the U.S. Appellate Court may rule in favor of Eoflow.</li>
</ul>


In this insight, we discuss the additional financing requirements, changed shareholding structure, and the next steps for Eoflow. 
Eoflow is one of the best performing stocks in the Korean stock market in the past one month as its shares have soared 249% in this period.
The details of the oral argument (Insulet vs Eoflow) at the U.S. Appellate Court suggest that the U.S. Appellate Court may rule in favor of Eoflow.


Eoflow: Financing Requirements, Changing Shareholding Structure, and the Next Steps

Event-Driven

<ul>
<li>Eoflow announced Insulet had filed an injunction on 3 July against Eoflow and Menarini requesting a ban on the manufacture, sale, distribution, and use of EOPatch in 17 European countries.</li>
<li>Given that Eoflow should have reported this event earlier, this is likely to result in further loss of confidence on Eoflow by many investors in the near term. </li>
<li>If Eoflow is able to complete its rights offering (albeit lower amount than proposed), this could boost its chances to become a formidable competitor to Insulet on a global basis. </li>
</ul>


Eoflow announced Insulet had filed an injunction on 3 July against Eoflow and Menarini requesting a ban on the manufacture, sale, distribution, and use of EOPatch in 17 European countries.
Given that Eoflow should have reported this event earlier, this is likely to result in further loss of confidence on Eoflow by many investors in the near term. 
If Eoflow is able to complete its rights offering (albeit lower amount than proposed), this could boost its chances to become a formidable competitor to Insulet on a global basis. 


Insulet Launches a Patent Lawsuit Against Eoflow in Europe

<ul>
<li>After the market close on 21 August, Eoflow (294090 KS) announced a rights offering capital raise of 9.1 million new shares, representing share dilution of 23%.</li>
<li>Based on the expected rights offering issue price of 9,040 won, the company is expected to raise 82.2 billion won in this capital raise. </li>
<li>Eoflow has monthly cash burn rate of about 3.3 billion won. If the rights offering is successful, it would have adequate capital resources for about a couple of years. </li>
</ul>


After the market close on 21 August, Eoflow (294090 KS) announced a rights offering capital raise of 9.1 million new shares, representing share dilution of 23%.
Based on the expected rights offering issue price of 9,040 won, the company is expected to raise 82.2 billion won in this capital raise. 
Eoflow has monthly cash burn rate of about 3.3 billion won. If the rights offering is successful, it would have adequate capital resources for about a couple of years. 


Eoflow: Rights Offering of 82 Billion Won and [Medtronic & Eoflow - Don't You Forget About Me]

<ul>
<li>This insight provides a detailed analysis of Eoflow's appellant brief (released on 4 December) on Insulet Corp (PODD US)'s lawsuit. </li>
<li>We provide the following three major reasons why we believe Eoflow will win versus Insulet in this lawsuit.</li>
<li>One of the most important arguments on Eoflow's appellant brief is the DTSA three years statute of limitations.</li>
</ul>


This insight provides a detailed analysis of Eoflow's appellant brief (released on 4 December) on Insulet Corp (PODD US)'s lawsuit. 
We provide the following three major reasons why we believe Eoflow will win versus Insulet in this lawsuit.
One of the most important arguments on Eoflow's appellant brief is the DTSA three years statute of limitations.


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Back on the 25 May, when <a href="https://www.smartkarma.com/entities/medtronic-plc" target="_blank" data-smartkarma-citation="entities:14982:1" rel="noopener">Medtronic Plc (MDT US)</a> enter into a SPA with <a href="https://www.smartkarma.com/entities/eoflow-co-ltd" target="_blank" data-smartkarma-citation="entities:36100:1" rel="noopener">EOFlow (294090 KS)</a>'s CEO, with a follow-on Tender Offer, the whole construct looked pretty clean.</li>
<li>Then in August <a href="https://www.smartkarma.com/entities/insulet-corp" target="_blank" data-smartkarma-citation="entities:5252:1" rel="noopener">Insulet Corp (PODD US)</a> launched its lawsuit, which in hindsight, should have been expected. Then earlier this month, news surfaced concerning a stock-backed loan to the CEO.</li>
<li>Now the CEO is selling, presumably to repay his collateralized loan. Shares are down 38% since the resumption of trading, and are now at a whopping 122% spread to terms. </li>
</ul>


Back on the 25 May, when Medtronic Plc (MDT US) enter into a SPA with EOFlow (294090 KS)'s CEO, with a follow-on Tender Offer, the whole construct looked pretty clean.
Then in August Insulet Corp (PODD US) launched its lawsuit, which in hindsight, should have been expected. Then earlier this month, news surfaced concerning a stock-backed loan to the CEO.
Now the CEO is selling, presumably to repay his collateralized loan. Shares are down 38% since the resumption of trading, and are now at a whopping 122% spread to terms. 


South Korea

Eoflow Co.,Ltd. develops and sells medical devices. The Company produces and sells wearable disposable insulin pumps and other products. Eoflow markets its products throughout Korea.

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Eoflow (294090 KS)

Eoflow: Financing Requirements, Changing Shareholding Structure, and the Next Steps

Eoflow's shares surged by 30% to 15,080 won today. Eoflow announced today that the U.S. District Court in Massachusetts had revoked the injunction...

Douglas Kim

Insulet Launches a Patent Lawsuit Against Eoflow in Europe

Eoflow announced Insulet had filed an injunction on 3 July against Eoflow and Menarini requesting a ban on the manufacture, sale, distribution, and...

Douglas Kim

Eoflow: Rights Offering of 82 Billion Won and [Medtronic & Eoflow - Don't You Forget About Me]

After the market close on 21 August, Eoflow (294090 KS) announced a rights offering capital raise of 9.1 million new shares, representing share...

Douglas Kim

Eoflow Vs Insulet: Round II

This insight provides an analysis of Eoflow's appellant brief on Insulet's lawsuit. We provide the three major reasons why we believe Eoflow will...

Douglas Kim

EOFlow (Further) Tests Investor Patience

The Appellant Brief Is out. EOFlow flags. inter alia, the statute of limitations; whether Insulet faces a significant risk of irreparable harm;...

David Blennerhassett

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