AriBio said on Tuesday it has signed an agreement to take over the management of Solux, a Kosdaq-listed company. 

AriBio said in a public filing that its CEO Jung Jae-joon will secure management control of Solux's largest shareholder, CEO Kim Bok-deok, and that Solux will raise 50 billion won ($37.3 million) in funding. In the future, Jung will become the new largest shareholder of Solux.

AriBio predicts that with this agreement, the two companies' business alliance strategy will be in full swing, and its drug development business will take off.

"AriBio's oral dementia drug development has become a global project, and we have a great responsibility," Jung said. "This is the best option we have considered to successfully carry out this project by focusing solely on final clinical trials and to increase the value of shareholders who have been investing and supporting the development of the drug."

Founded in 1995, Solux specializes in lighting, including specialty lighting, indoor and outdoor lighting, outdoor lighting, and emergency lighting.