Wehand Bio Receives Supplementary Material Requirements for Overseas Listing Record-Filing, Focusing on Impact of Controlling Person’s Loan Guarantees on Control and Pricing for Newly Added Shareholders

NewTimeSpace News: Recently, Beijing Wehand-Bio Pharmaceutical Co., Ltd. has obtained supplementary material requirements from regulators amid its overseas listing record-filing procedures. The Company shall provide supplementary explanations covering the following matters, with legal counsel performing verification procedures and issuing definitive legal opinions accordingly.

First, the Company needs to supplement details on the specific completion of regulatory procedures including overseas investment and foreign exchange administration involving its overseas subsidiaries, and render conclusive opinions on compliance status. Second, combining solvency indicators, the Company shall supplement disclosures on share pledges, loan guarantees provided by the actual controller and his spouse before and after the proposed offering, and analyze whether such arrangements may trigger material title disputes or result in a change of controlling shareholder of the issuer. Third, the Company shall analyze the reasonableness of share subscription prices for new shareholders admitted within the latest 12 months and the root causes of price discrepancies, and issue definitive conclusions on whether any benefit transfer exists. Fourth, supplementary explanations shall be provided regarding compliance of implemented equity incentive schemes, including composition and employment background of participants, associated relationships between participants and other shareholders, directors, supervisors and senior management of the issuer, as well as fairness of grant prices, terms stipulated in incentive agreements, completion of decision-making procedures and standardized operation records. Clear conclusions on legal compliance and potential benefit transfer risks shall be delivered. Fifth, the Company shall disclose whether shares held by shareholders intending to participate in full-circulation carry encumbrances such as pledges, freezes or other title defects. Legal counsel shall verify all the above matters and issue explicit legal opinions.