TONYMOLY Co.,Ltd. (KOSE:A214420) signed a contract to acquire 47.6% stake in Tai Guk Pharm Co.,Ltd. from Changgoo Lee and Jungu Lee for KRW 14 billion on August 1, 2017. Under the transaction, TONYMOLY Co.,Ltd. will acquire 5.8 million shares in cash. 10% of the consideration is payable on contract signing date and the balance on September 30, 2017. The consideration will be financed by TONYMOLY Co.,Ltd. by its own funds. During the financial year ended December 31, 2016, Tai Guk Pharm Co.,Ltd. reported total assets of KRW 97.57 billion, revenue of KRW 60 billion and net loss of KRW 788.3 million. The transaction has been resolved by Board of Director of TONYMOLY Co.,Ltd. on August 1, 2017. The transaction is expected to be completed on September 30, 2017. Ernst & Young, Korea acted as external rating institution. TONYMOLY Co.,Ltd. (KOSE:A214420) cancelled the acquisition of 47.6% stake in Tai Guk Pharm Co.,Ltd. from Changgoo Lee and Jungu Lee on September 13, 2017. The transaction is cancelled due to is is due to the Changgoo Lee and Jungu Lee's statement and the reason for breach of the warranty. TONYMOLY Co.,Ltd. will bill Changgoo Lee and Jungu Lee with a down payment of KRW 1.4 billion and a penalty of KRW 1.4 billion. Ernst & Young Global Limited, Corporate Finance acted as financial advisor to TONYMOLY Co.,Ltd.