Sillajen said that M2N has become the company's largest shareholder after acquiring 18.75 million new shares with 60 billion won ($52.2 million).

M2N has set a three-year probationary period for all of its newly acquired shares after deciding to emphasize responsible management as the largest shareholder and guarantee the rights of minority shareholders.

"With this payment as a starting point, the two companies will work toward normalizing their business and strengthening expertise in the bio-industry," the company said. "As part of the strategy, the company will hold an extraordinary general shareholders’ meeting on Aug. 13 to appoint its new board of directors."

The new board of directors will consist of experts for normalizing the company's operation by strengthening Sillajen's internal control and fostering talents who can develop the company's biotechnology expertise, the company said.

The company expects veterans from Greenfire Bio (GFB), a U.S. drug development company in which M2N is the largest shareholder, to join Sillajen's board of directors.

"As the new largest shareholder, we will do our best to become a pioneer in the bio-industry and conduct business responsibly," an M2N official said. "We will strive to establish a virtuous cycle model in the bio-industry through M2N, Sillajen, and GFB."

A Sillajen official also said, "We are pleased to welcome M2N, who has strong capital and expertise, as our new largest shareholder."

With the new opportunity, the company will do its best on its ongoing R&D projects, he added.