Thumbage proceeds with 70% rights offering and 10:1 reverse stock split amid financial distress and delisting risk
Rights offering: 9,800,000 common shares (estimated price 1,279 won, total ~12.5 billion won, dilution ratio 70.38%)
Conducting a 10:1 reverse stock split (par value 100 won unchanged, per share price 10x increase)
Operating losses for 4 consecutive fiscal years; 2025 consolidated revenue 6.0 billion won (down 56.9% YoY), operating loss 7.9 billion won, net loss 9.3 billion won
End-2025 total assets 14.3 billion won, capital erosion rate 7.16% (expected to be resolved post split), cash & equivalents 0.4 billion won
Negative operating cash flow for 3 consecutive years (minus 6.7 billion won in 2025), limited short-term financial products of 2.0 billion won
Major shareholder and related parties plan to subscribe ~3.0 billion won (2.0 billion won by Kwon Jun-mo, 1.0 billion won by Jung Ki-hong) for 3,347,639 shares; post-offering stake to drop from 34.16% to 29.93%
Delisting risks: market cap below 30 billion won threshold, penny stock rule (price below 1,000 won) tightened; high likelihood of managed stock or delisting
Key game 'GODS RAID' revenue plummeted; reliance on 'Boxing Star' at 60.8%; new game releases uncertain
87.2% of revenue concentrated on Google and Apple platforms; platform policy change risk