Company reports outsider suspected of “rumor mongering” intended to manipulate company’s stock, and plans to take legal action against “NEXT Magazine”

OBI Pharma announces the end of the implementation for its first treasury share buyback program
April 22, 2016
Supplementary notice on a company board resolution for the upcoming 2016 Annual Shareholders’ Meeting
May 13, 2016

1.Parties to the legal matter, name of the court, disposing agency, and reference/case numbers of relevant documents:
Plaintiff: OBI Pharma, Inc.
Defendants:
(1)An individual spreading false rumors and manipulating company stock price;
(2)The weekly magazine “NEXT Magazine” and its owners/stakeholders
Court Name:
(1)Taipei District Court Prosecutor’s Office;
(2)Taipei District Court
Authority and Case Number: Not yet assigned
2.Date of occurrence of the event:2016/05/03
3.Background and circumstances of the matter (including the property/subject
matter under dispute):
(1) Action is being taken against so-called “Vulture capitalists” spreading
false rumors and manipulating stock prices directly or indirectly in order
to negatively affect the company stock price and market capitalization.
Prosecutors should have taken action but have not yet been seen to conduct
any active investigation. The company reported its information on suspicion
of criminal activity to the Taipei District Court Prosecutor’s Office, and
believes that the Prosecutor’s Office should promptly investigate and deal
with this matter, in order to maintain law and order, and to protect the
rights of the company and all its shareholders.
(2) Next Magazine, writers, editors, owners and other personnel for
publishing and distributing false reports, with intent to injure the company
name and reputation.
4.Course and progression of handling of the matter: The company today
(3 May 2016) submitted its legal charges to the Taipei District Court
Prosecutor’s Office against an individual for allegedly spreading rumors and
manipulating the stock price of the company, and to the Taipei District Court
against Next Magazine for knowingly publishing false reports, resulting in
serious damage to the company credibility and reputation.
5.Effect on company finances and business and  estimated monetary amount of
the effect: None
6.Countermeasures and status of amelioration: None
7.Any other matters that need to be specified: Company operations and
financial position all normal.