70% Dilutive Rights Offering (12.5B KRW) Combined with 10:1 Reverse Stock Split - High Delisting Risk
Thumbage plans to issue 9,800,000 new shares (70.38% of post-split outstanding shares) via a rights offering and subsequent public offering to raise approximately 12.5 billion KRW (preliminary issue price 1,279 KRW).
Concurrently, a 10:1 reverse stock split will be executed to increase the per-share price by 10 times, aiming to avoid the 'penny stock' delisting rule (stock price below 1,000 KRW), but the risk remains if the post-split price still falls below 1,000 KRW.
The company has reported operating losses for 4 consecutive fiscal years (2025 standalone: -4.6 billion KRW) and a ratio of loss before income tax to equity of 71.69%, making it highly likely to be designated as a 'managerial issue' stock; further loss in 2026 would inevitably trigger a 'cautionary stock' designation.
Due to stricter delisting criteria announced by the Financial Services Commission in February 2026, the company faces high risk of delisting due to market cap below 30 billion KRW (currently ~23 billion) and penny stock status, even after the reverse split and capital increase.
The largest shareholder and related parties (Kwon Joon-mo, Jeong Ki-hong) plan to subscribe for a total of 3 billion KRW, but their combined stake may drop from 34.16% to as low as 29.93% post-offering, threatening management stability.
Of the 12.5 billion KRW raised, 7 billion will be used for game portfolio expansion (five titles including Paladog Inventories and Project FPS), 4.2 billion for marketing, and 1.334 billion for server and infrastructure.
As of end-2025, the capital impairment rate was 7.16%, expanding to 15.01% in Q1 2026; the interest coverage ratio was -183.16 times, indicating operating profit cannot even cover interest expenses.
KOSDAQ Filing Information
Filing: [Correction of Description] Securities Registration Statement (Equity Securities)