The Korea Exchange granted a one-year grace period for Kolon TissueGene, delaying the decision whether to delist the company from the Kosdaq market.

Last year, the government revoked the permit for the company’s gene therapy Invossa-K over mislabeling an ingredient and falsely reporting it to the regulator.

In a public filing on Tuesday, Kolon TissueGene said the KRX held a corporate review committee meeting and decided to give one more grace period to improve its management.

Kolon TissueGene received an “inappropriate” audit opinion for the fiscal year of 2019 and the first half of 2020. This was the reason why the KRX decided to review Kolon TissueGene for possible delisting. However, the company later submitted a report that it had implemented its improvement plan.

With the grace period, Kolon TissueGene has to submit to the KRX a report that it had implemented its improvement plan and an expert’s verification of the report within 15 business days from Aug. 31, 2022.

Then, the KRX will hold a corporate review committee within 20 business days from the document submission date and assess whether to delist the company.

The latest grace period does not necessarily mean Kolon TissueGene will survive.

Separately from the grace period, the Kosdaq Market Committee plans to review delisting on Dec. 17.

Earlier, the KRX judged that Invossa containing kidney cells instead of cartilage cells demonstrated that the company had submitted a false report or omitted an important matter in the document when it received the regulator’s review for Kosdaq listing.

As the one-year grace period for Kolon TissueGene given last year ends on Dec. 17, the Kosdaq Market Committee will decide whether to kick the company out of the market on that day.