K&Tech Korea Co., Ltd. agreed to acquire 5.9% stake in Schnell Biopharmaceuticals,Inc. (KOSE:A003060) from Kim Jae-Sup for KRW 18 billion on December 6, 2012. As part of the consideration, K&Tech Korea Co., Ltd. will deposit KRW 1.8 billion paid on signing date and second payment of KRW 10.2 billion to be paid on December 24, 2012 and balance KRW 6 billion to be paid on February 28, 2013. K&Tech Korea Co., Ltd. is acquiring 7 million shares of Schnell Biopharmaceuticals,Inc. representing 5.9% stake.

As of January 7, 2013, it was announced that the payment schedule of 2nd payment and the remaining balance is moved to until January 18, 2013. Since the K&Tech Korea Co., Ltd. failed to execute all the conditions of the contract, Kim Jae-Sup can temporarily cancel the contract, and K&Tech Korea Co., Ltd. can sign a new signing of acquisition contract of retained shares and management rights in largest shareholders with other party. Also, regardless of the contract with a singing of a new contract with other contract counterpart, in case that K&Tech Korea Co., Ltd. cannot pay the 2nd and the remaining balance until January 18, 2013, all the responsibility will lie on K&Tech Korea Co., Ltd., and Kim Jae-Sup will file for penalty pursuant to the contract article 13 verse 2 including depriving of the already paid deposit of KRW 1.8 billion.

K&Tech Korea Co., Ltd. cancelled the acquisition of 5.9% stake in Schnell Biopharmaceuticals,Inc. (KOSE:A003060) from Kim Jae-Sup on January 14, 2013. The transaction which was completed on December 13, 2012 was reversed because the buyer repeatedly failed to pay the second payment and also because source of funding the acquisition was not transparent. Kim Jae-Sup will keep the contract deposit of KRW 1.8 billion.