FINE DNC Adjusts Stock Option Exercise Price and Shares Due to Reverse Split, Limited Impact on Existing Shareholders

Due to a 5:1 reverse stock split (face value from 500 won to 2,500 won) approved at the shareholders' meeting on March 30, 2026, FINE DNC adjusted the exercise price of stock options granted on March 29, 2023 from 1,400 won to 7,000 won, and the number of shares from 820,000 to 160,000
The number of grantees decreased from 31 to 29 reflecting resignations; the fair value per option remained unchanged at 694 won
With the current stock price (2,015 won) far below the adjusted exercise price (7,000 won), the likelihood of option exercise is low, limiting dilution risk for existing shareholders
The purpose of the stock option grant is to motivate employees for new business preparation and retain talent, serving as compensation for mid-to-long-term performance
The grant ratio decreased from 2.72% of pre-split outstanding shares to 1.51% of post-split outstanding shares, reducing potential dilution
[AI Summary]This corrective disclosure on stock option adjustments due to the reverse split is largely procedural; as the exercise price significantly exceeds the current market price, the risk of exercise and consequent dilution is minimal, thus having a negligible negative impact on existing shareholders